Texas is one of the largest mortgage markets in the country and one with the largest Hispanic populations. To work as a state-licensed loan officer, first understand something that doesn't happen in most states: in Texas, two agencies can issue your license.
SML or OCCC: which one applies to you?
- Texas Department of Savings and Mortgage Lending (SML): licenses most residential mortgage loan originators working at mortgage companies and brokers.
- Office of Consumer Credit Commissioner (OCCC): licenses originators at companies regulated by that office, for example on certain second-lien or manufactured housing loans.
The practical rule: the agency depends on your employer. Ask the company that will sponsor you which agency to apply with before you buy the course.
Pre-licensing education
- SML: 23 hours: the 20 national hours plus 3 hours on Texas mortgage law and practice. Other states' specific elective hours don't count.
- OCCC: 20 national hours, with no additional Texas hours.
If you take only the 20 hours and later your employer needs an SML license, you'll have to complete the 3 Texas hours before it's issued.
The rest of the process
- Create your NMLS account.
- Complete the education your agency requires.
- Pass the SAFE MLO Test with 75% or higher (there's no separate state exam).
- File the MU4 in NMLS with the correct agency.
- Complete fingerprints for the background check and the credit report authorization.
- Get sponsored by your company.
Renewal
The license renews every year with at least 8 hours of NMLS-approved continuing education. Check NMLS for whether your agency requires Texas-specific content in that year's continuing education.
What makes the Texas market different
Texas has very important rules of its own, such as those for home equity lending and homestead protection. That's why the SML state module isn't a formality: it prepares you for situations you'll see in practice with clients in Houston, Dallas, San Antonio, Austin or the Rio Grande Valley.
Frequently asked questions
How many education hours do I need in Texas?
23 hours for an SML license (20 national + 3 Texas) and 20 hours for an OCCC license.
Does Texas have a state exam?
There's no separate state exam; you take the SAFE MLO Test with Uniform State Content.
How do I know whether to apply with SML or OCCC?
It depends on the company sponsoring you and its license type. Ask your employer before buying the course.
Sources
- 7 Tex. Admin. Code § 55.108 (required education, SML).
- NMLS, Texas SML and Texas OCCC education requirements.
- Texas Department of Savings and Mortgage Lending; Office of Consumer Credit Commissioner.
Last reviewed: November 2026. Confirm current fees and requirements with the agency before applying.