Loan Officer Requirements

REQUIREMENTS FOR LOAN OFFICER

  The 79th Legislative Session passed two bills that modified the Mortgage Broker License Act (MBLA):  House Bill 955 and Senate Bill 988.  The following information pertains to an application received by the department for an initial license or the renewing of a license on or after 9/1/2005:

• Fee Increase—The current licensing fee schedule has been increased to provide additional funding necessary to support the agency’s expanded consumer complaint, enforcement, and examination efforts.  The new fee schedule is:

Mortgage Broker                                                      Loan Officer

$375 Application Fee                                                   $175 Application Fee

    20 Recovery Fund                                                      20 Recovery Fund

    39 Background Check (new applicants only)                  39 Background Check (new applicants only)

• CE Hours Increase for New Applicants—The current requirement for a loan officer applicant needing a 15-hour core (pre-licensing) course in lieu of 18 months of loan origination experience has been expanded to 28 hours of core course training and 2 hours of ethics training. 

• CE Hours Redefined for Renewing Licensees—The current requirement of needing 15 hours of continuing education for renewing licensees has not changed but the breakdown of the hours required has been established as:

8 hours of Core (including 2 hours of Ethics)

7 hours of either CE or Core

• Financial Requirements Modified—In completing the Personal Financial Statement, assets that are exempt under federal and state law can no longer be used to determine overall net assets.  You may no longer include in your Personal Financial Statement the following:  real estate used as primary residence; home furnishings; business tools, equipment, and farming implements; jewelry; recreational vehicles and watercraft; retirement plans; college savings plans; etc.  Additional information may be found by reviewing Chapters 41 and 42 of the Texas Property Code. 

• .

(c)AATo be eligible to be licensed as a loan officer a person

must:

(1)AAbe an individual who is at least 18 years of age;

(2)AAbe a citizen of the United States or a lawfully

admitted alien;

(3)AAdesignate in the application the name of the

mortgage broker sponsoring the loan officer;

(4)AAprovide the commissioner with satisfactory

evidence that the applicant satisfies one of the following:

(A)AAthe person meets one of the requirements

described by Subsection (a)(4);

10

(B)AAthe person has successfully completed 60

hours of education courses approved by the commissioner under this

section;

(C)AAthe person has 18 months of experience as a

loan officer as evidenced by documentary proof of full-time

employment as a loan officer with a mortgage broker or a person

exempt under Section 156.202; or

(D)AAfor applications received prior to January 1,

2000, the mortgage broker that will sponsor the applicant provides

a certification under oath that the applicant has been provided

necessary and appropriate education and training regarding all

applicable state and federal law and regulations relating to

mortgage loans;

Text of subsec. (c)(5) as amended by Acts 2003, 78th Leg., ch. 170,

Sec. 1

(5)AAnot have been convicted of a criminal offense that

the commissioner determines directly relates to the occupation of a

loan officer as provided by Chapter 53, Occupations Code;

Text of subsec. (c)(5) as amended by Acts 2003, 78th Leg., ch. 171,

Sec. 1

(5)AAnot have been convicted of a criminal offense that

the commissioner determines directly relates to the occupation of a

loan officer under Chapter 53, Occupations Code; and

Text of subsec. (c)(6) as added by Acts 2003, 78th Leg., ch. 170,

Sec. 1

(6)AAsatisfy the commissioner as to the individual’s

good moral character, including the individual’s honesty,

trustworthiness, and integrity; and

Text of subsec. (c)(6) as added by Acts 2003, 78th Leg., ch. 171,

Sec. 1

(6)AAprovide the commissioner with satisfactory

evidence of having passed an examination, offered by a testing

service or company approved by the finance commission, that

demonstrates knowledge of:

(A)AAthe mortgage industry; and

(B)AAthe role and responsibilities of a loan

officer.