texas mortgage broker license: Mortgage Broker License Act

2008-05-29 11:44:00

( Financial )



If you need to use mortgage broker software or other mortgage broker tools you will first need a license to practice and will need to look into getting a texas mortgage broker license. In this case you might be interested in knowing something about the mortgage broker license act for Texas.

Am I exempt from the act as a real estate person?
No – neither sales persons nor real estate persons are exempt. To broker first lien mortgage loans you need to apply for and meet all the criteria for a texas mortgage broker license. If you have a real estate / broker’s license you qualify for the experience criteria. However a real estate sales license doesn’t qualify you for this requirement.

Also, if you don’t currently hold a license as a real estate broker in texas – i.e.:
• licensed in another state
• Texas license has lapsed,
you don’t fulfill the experience requirement for texas mortgage broker license.

My company closes loans in their own name. Are they exempt?
Not necessarily. The issue is not whether your company closes the loan in its own name. you are exempt as an employee of a mortgage banker. A mortgage banker is determined as a:

• FHLMC / FNMA servicer or seller
• HUD-approved lender with the authority to endorse
• GNMA issuer.
Employees are also distinguished from independent contractors.
Employees receive W-2’s.
Agents or independent contractors receive a 1099.

To be exempt a W-2 employee must act for the benefit of the company that employs them.

So if you broker loans on the side to anyone other than your primary employer – you will need a texas mortgage broker license .

What should I do if I am changing sponsoring broker?
Your old broker needs to send in the original loan officer’s license as well as a letter saying that they are no longer sponsoring you. Then you need to complete two forms and send them to the relevant department, who will issue a new license to your chosen sponsoring broker.

What if I am a mortgage broker who employs a real estate agent as a loan officer? Can they by definition be both on the same transaction?
Yes they can – the law doesn’t preclude this. However, they have to advise the client in writing and get the client’s written consent. You need to make this disclosure on a specific form.


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