Texas Mortgage Company License Requirements

Texas Mortgage Company License Requirements

Texas Mortgage Company License Requirements: Are you interested in becoming a Texas mortgage company? If so, you need to be aware of all the necessary requirements. After all, your business will be operating under the supervision of state authorities and must adhere to industry rules and regulations. Making sure that you have the right licensing is key to running a successful and compliant mortgage business. In this blog post, we’ll take a look at the Texas mortgage company license requirements and how you can go about meeting them. From understanding what documents are needed for licensing to information about fees and more, keep reading to learn everything you need to know.

What is a mortgage company?

A mortgage company is a financial institution that provides loans to individuals and businesses to purchase real estate. Mortgage companies typically offer a variety of loan products, including fixed-rate and adjustable-rate mortgages, as well as jumbo loans for high-priced properties. Mortgage companies are regulated by state and federal laws, which set forth requirements for licensing, business conduct, and consumer protection.

Mortgage companies play an important role in the economy by providing financing for the purchase of homes and other real estate. In the United States, the mortgage industry is regulated at the federal level by the Consumer Financial Protection Bureau (CFPB) and at the state level by individual state agencies. Mortgage companies must obtain a license from each state in which they do business. Most states have their own specific requirements for licensing, but all require that mortgage companies maintain a valid surety bond as part of the licensure process.Texas Mortgage Company License Requirements

The surety bond requirement protects consumers from financial loss if a mortgage company violates state law or engages in fraudulent or dishonest business practices. The bond amount varies by state, but is typically equal to one year’s worth of the company’s average loan volume. If a mortgage company fails to pay a claim against its bond, the surety company that issued the bond willstep in to cover the loss up to the full amount of the bond.

Consumers should be aware that not all states have laws specifically regulating mortgage companies. Some states only regulate banks and credit unions that offer mortgage

What are the requirements to obtain a mortgage company license in Texas?

In order to obtain a mortgage company license in Texas, you must:

-Be at least 18 years of age
-Have a high school diploma or equivalent
-Complete 20 hours of pre-license education from a state-approved provider
-Pass the state licensing exam with a score of 75% or higher
-Submit a completed application and supporting documentation to the Texas Department of Savings and Mortgage Lending

Once you have met all of the above requirements and have been granted a license by the department, you will need to maintain your license by completing 8 hours of continuing education annually.

How to apply for a mortgage company license in Texas

In order to apply for a mortgage company license in Texas, you must first submit a written application to the Texas Department of Savings and Mortgage Lending. Along with your application, you must include:

-A $500 non-refundable application fee
-A surety bond in the amount of $25,000
-A Certificate of Deposit (CD) or trust account certificate in the amount of $5,000
-Financial statements for the past two years
-A business plan
-An audited financial statement for the most recent year
-Proof of Errors and Omissions insurance coverage in the amount of at least $250,000 per occurrence/$500,000 aggregate

After your initial application is reviewed and approved, you will be required to complete an online examination. The cost of the examination is $50. Upon passing the examination, you will be issued a mortgage company license.


Getting a mortgage company license in Texas is no easy task. It requires you to jump through several hoops and meet strict requirements set by the state government. But, by following the steps outlined above, you should be well on your way to obtaining your mortgage license for Texas. With this license, you’ll be able to provide Texans with valuable services that could help them get their dream homes and secure financial futures.

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