Texas Mortgage Broker Bond

    Texas mortgage brokers have been under regulation since January 1, 2000. The Texas Department of Savings and Mortgage Lending has the authority to regulate mortgage broker, and loan officer licensees due to the Mortgage Broker License Act. This act is one of the more restrictive policies one brokers in the United States. One reason is that there is no provision for business entities; instead any individual who performs brokering activities on behalf of the business entity must be licensed as a mortgage broker, or a loan officer.
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To qualify for licensure individuals must be 18 years of age, and have three years experience. If the applicant does not have three years experience a bachelors degree and 18 months experience, or being actively licensed as a lawyer, real estate agent, insurance solicitor, or local recording agent can exempt the applicant from the 3 years experience qualification. In addition to the age and experience qualifications, the applicant must complete 15 hours of continuing education during the licensing period, as well as a minimum net worth of $25,000 or a $50,000 surety bond. An in-state office is also required.

Perhaps where Texas is toughest is on the requirements for employees of mortgage brokers. An employee of a mortgage broker must: be at least 18 years of age, demonstrate fitness, and pass a written exam. What sets Texas apart is that applicants for a Texas loan officer license must also fulfill one of the following requirements:

  • 1) 3 years of experience in the mortgage lending field with documented proof of full time employment as a loan officer with a licensed mortgage broker or exempt person.
  • 2) A Bachelors degree in an area relating to finance, banking, or business administration forma an accredited university or college. This applicant must also have 18 months experience in the mortgage lending field as evidenced by full time employment under a mortgage broker or exempt person.
  • 3) The person is licensed in Texas as a real estate agent (active license), and attorney (active), a local recording agent, an insurance agent, or an agent for a legal reserve life insurance company.
  • 4) Completed 30 hours of education courses that have been approved by the commissioner.
  • 5) 18 months of experience as a loan officers evidenced by documentary proof of full time employment as a loan officer under a mortgage broker or exempt person.

Loan officers are required to complete 15 hours of continuing education through out the licensing period.

Bad Credit Mortgage Broker Bonds

Applicants with a low credit score, or public records (Bankruptcy, Liens, Collection, or Civil Judgments) will find a difficult time getting bonded. Bryant Surety Bonds, inc offers a Bad Credit Surety Bond Program that is specially tailored to your needs and can get you approved. This program is available for high risk mortgage brokers.

Texas Licensure Requirements*

Applicant Requirements:

  • Age: Must be at least 18 years of age.
  • State Residency: No Requirement
  • Experience/Education: See second paragraph above.
  • Continuing Education: 15 hours of continuing education unless exempt by being an active attorney, real estate agent, real estate salesperson, insurance solicitor or local recording agent.
  • Examination: Applicant must pass an exam.
  • Fitness For Licensure: Good Moral Character (honesty, trustworthiness, and integrity)
  • Net Worth/Surety Bond: Maintain a net worth of $25,000 or a $50,000 mortgage bond.
  • Background Check: Applicant must submit fingerprints and consent to a criminal background check.
  • Managing Principal: None

State Licensing Fees:

  • Initial Application: $375 Licensing Fee, $20 Recover Fund Fee, $39 Fingerprint Fee
  • Branch Application: $50 Branch Licensing Fee
  • Renewal Application: $395 Renewal Fee

Employee Requirements:

  • Age: Must be at least 18 years of age.
  • State Residency: No Requirements
  • Experience/Education:
    • 1) 3 years of experience in the mortgage lending field with documented proof of full time employment as a loan officer with a licensed mortgage broker or exempt person.
    • 2) A Bachelors degree in an area relating to finance, banking, or business administration forma an accredited university or college. This applicant must also have 18 months experience in the mortgage lending field as evidenced by full time employment under a mortgage broker or exempt person.
    • 3) The person is licensed in Texas as a real estate agent (active license), and attorney (active), a local recording agent, an insurance agent, or an agent for a legal reserve life insurance company.
    • 4) Completed 30 hours of education courses that have been approved by the commissioner.
    • 5) 18 months of experience as a loan officers evidenced by documentary proof of full time employment as a loan officer under a mortgage broker or exempt person.
  • Continuing Education: Applicant must complete 15 hours of continuing education during the term of the license. Licensed real estate brokers, real estate salesperson, attorneys, local recording agents, and insurance solicitors are exempt from this requirement.
  • Examination: Applicant must pass an examination.
  • Fitness For Licensure: Good Moral Character (honesty, trustworthiness, and integrity)
  • Net Worth: No Requirement
  • Surety Bond: No Requirement
  • Background Check: Applicant must consent to a criminal background check, and submit fingerprints.
  • Managing Principal: Unknown
  • Exemptions: None
  • Licensing Fee: $239 Licensing Fee, this includes a $39 Fingerprint Fee, and a $20 Recovery Fund Fee.
  • Renewal Fee: $195 Renewal Fee

Branch Offices:

  • In State Requirements: A license must maintain an in state office.
  • Licensure Requirements: Licensee must obtain a license for each branch.
  • Branch Manager: No Requirement

Exemptions:

  • Entities: Regulated financial institutions, insurance companies
  • Safe Harbor: An individual who makes a mortgage loan from his own funds, and who does not regularly engage in the business of brokering loans is exempt.

*Information for state licensing is provided as a guide, always verify with the state that the information is correct.

How to apply:

1.) Visit the commercial application page.
2.) Complete our online application.