Texas MLO License Requirements (2026 SML Guide)

Texas is one of the biggest mortgage markets in the country, and it has its own twist on the SAFE Act licensing process. Most new Texas loan originators get licensed through the Texas Department of Savings and Mortgage Lending (SML), and SML asks for a little more than the federal minimum: 23 hours of pre-licensing education instead of 20, a $20 recovery fund fee, and a strict definition of what counts as a criminal conviction.

This guide walks through the Texas residential mortgage loan originator (RMLO) license step by step: education, the SAFE test, fees, the background and credit review, sponsorship, temporary authority, and renewal. Every number below comes from the NMLS Texas-SML education page, the Texas Finance Code, the Texas Administrative Code, and SML's own FAQ and fee announcements, which we checked on October 24, 2026. This is study and planning information, not legal advice. Confirm current requirements with SML and the NMLS Texas-SML checklist before you apply.

The short version

You need 23 hours of NMLS-approved pre-licensing education: the federal 20 hours plus 3 hours of Texas law.
You must pass the SAFE MLO test (National Test with Uniform State Content). Texas does not have a separate state test.
SML charges a $125 application fee plus a $20 recovery fund fee for an original license. With the NMLS fees and the $110 test, plan on about $341.25 before education.
Texas checks your criminal history and credit. A felony in the 7 years before you apply, or a felony involving fraud, dishonesty, breach of trust, or money laundering at any time, blocks the license. In Texas, deferred adjudication counts as a conviction for this purpose.
You must be sponsored by a licensed mortgage company or registered mortgage banker to originate. You cannot originate "on your own" with just the individual license.
Licenses renew every year from November 1 to December 31 with 8 hours of CE. The SML renewal fee is $90.

Step 1: Confirm SML is your regulator

Texas has two agencies that license individual mortgage loan originators in NMLS: the Department of Savings and Mortgage Lending (SML) and the Office of Consumer Credit Commissioner (OCCC). Which one you apply to depends on the company that will sponsor you. SML licenses originators who act on behalf of a licensed mortgage company or a registered mortgage banker. SML's FAQ notes that there is some overlap between the two agencies and points applicants to the RMLO New Application Checklist on the NMLS SML licensing page. If you are not sure, ask your sponsoring company which Texas license it holds before you pay any fees, because SML says applications cannot be transferred between the agencies and fees are not refundable.

The rest of this guide covers the SML license, which is the path for most originators working at Texas mortgage companies and mortgage bankers.

Who needs the license? Under the Texas SAFE Act, an RMLO is someone who, for compensation or gain, takes a residential mortgage loan application or offers or negotiates the terms of a residential mortgage loan (Finance Code 180.002). SML also requires a license for independent contractor loan processors and underwriters. A W-2 processor who works only for one licensed company and does not advertise does not need one, but a 1099 processor does.

Step 2: Complete 23 hours of pre-licensing education

Texas follows the SAFE Act structure and adds 3 hours of state law. According to the NMLS Texas-SML education page, the breakdown is:

Topic	Hours
Federal law	3
Ethics (including fraud, consumer protection, and fair lending)	3
Non-traditional mortgage lending	2
Electives	12
Texas-SML law, rules, and practice	3
Total	23

You have two ways to get there. NMLS says you can take a single 23-hour Texas-SML comprehensive course, or a 20-hour comprehensive course plus a 3-hour Texas-SML elective. Either way, every course has to come from an NMLS-approved provider.

Two Texas rules trip people up:

Other states' state-specific hours do not count. If you already took a 20-hour course that used some elective hours for another state's law, SML will not count those hours toward your 12 electives. 7 Tex. Admin. Code 55.108(c) lets you make up the shortfall with a short Texas-specific course.
Education expires. Your pre-licensing education must be completed within the 3 years before you apply. If it is older, you have to retake the education approved at the time you apply.

Comparing providers? Our pre-licensing course provider comparison covers pricing and formats, and the MLO license requirements by state table shows how Texas-SML's 23 hours compares to other states.

Step 3: Pass the SAFE MLO test

Texas uses the national SAFE MLO test with Uniform State Content. There is no separate Texas state exam. Finance Code 180.057 requires a written test developed by NMLS and given by an approved test provider, and the retake rules follow the federal SAFE Act.

The test has 120 questions (115 scored), a 190-minute time limit inside a 225-minute appointment, and a 75% passing score.
The NMLS test fee is $110.
If you fail, you wait 30 days to retake. After a third consecutive failed attempt, you wait 180 days.
A test passed before April 1, 2013 (before the Uniform State Content version) does not satisfy SML for a new license.
If you go 5 consecutive years without holding an RMLO license, you must retake the test.

Because the Texas-specific material lives in your 3 hours of state law, not on the exam, your test prep should focus on the five national domains. Uniform State Content is 11% of the test and covers the SAFE Act model state law, not Texas rules. Our Uniform State Content guide explains what is on it, and you can check your starting point with our free NMLS SAFE practice test.

Step 4: Submit your MU4 and pay the fees

You apply through NMLS by filing Form MU4 and requesting the Texas-SML RMLO license. All fees are paid through NMLS. SML's FAQ says its fees are not refundable or transferable.

Fee	Amount	Paid to
SML application fee	$125	SML
Recovery fund fee (original license only)	$20	SML
NMLS initial setup fee (per license)	$35	NMLS
Criminal background check (live scan fingerprints)	$36.25	NMLS
Credit report	$15	NMLS
SAFE MLO test	$110	NMLS
Total before education	$341.25

A few notes on these numbers. SML raised the RMLO application fee from $100 to $125 effective November 1, 2024, and announced that its license fees were unchanged for both FY2026 and FY2027 (the schedule that took effect September 1, 2026). Finance Code 157.013 sets the $20 recovery fund fee for an original license and caps the application fee at $500. If your fingerprints are taken on paper cards instead of live scan, NMLS adds a $10 card packet fee. Credit card payments in NMLS carry a 2.5% service fee; ACH payments do not. Your pre-licensing course is extra and varies by provider. Use our NMLS license cost calculator to add education and any other states you plan to license in.

Step 5: Pass the background and credit review

SML runs a criminal history check (with fingerprints) and a credit history check on every applicant. If you are already licensed in another state, you may not need new fingerprints unless your prints have expired or are otherwise invalid. Finance Code 180.055 says SML cannot issue the license unless you:

Have never had an RMLO license revoked in any jurisdiction (a formally vacated revocation does not count).
Have not been convicted of, or pled guilty or no contest to, a felony in the 7 years before your application, or a felony involving fraud, dishonesty, breach of trust, or money laundering at any time. A conviction with a full pardon does not count.
Show financial responsibility, character, and general fitness.
Completed the pre-licensing education and passed the written test.
Paid the recovery fund fee.

The Texas conviction rule

This is the part that surprises people. Finance Code 157.0131 says a person is considered convicted if a sentence was imposed, if the person received probation or community supervision, including deferred adjudication or community service, or if the court deferred final disposition of the case. So a felony that ended in deferred adjudication can still count for the Texas license review, even if you think of it as "not a conviction." SML's criminal conviction guidelines are in 7 Tex. Admin. Code 55.113. For how the federal rules and the MU4 disclosure questions work, see our NMLS background check guide.

Credit and financial responsibility

SML does not use a minimum credit score. Its FAQ says it looks at your financial responsibility overall. Judgments, back child support, tax liens, charge-offs, collection accounts, and foreclosures or short sales with a deficiency can count against you. Judgments that come only from medical expenses, and delinquent student loan accounts, are not considered. SML may offer a conditional license if you have a payment plan in place and are making timely payments, and you then have to keep making those payments to keep the license.

You must also be a U.S. citizen or a lawfully admitted alien (Finance Code 157.012). If you are not a citizen, you can still apply with documents showing your status.

Step 6: Get sponsored

An SML license only lets you originate when it is sponsored by an appropriate company: a licensed mortgage company or a registered mortgage banker. SML's FAQ says an RMLO cannot do business "on their own" with the individual license. If you want to work under your own name, you need a separately licensed or registered sole proprietorship.

Sponsorship rules to know:

If your sponsorship is removed, your license goes to an inactive status until a new sponsor's request is accepted. There is no grace period, and you cannot originate while inactive.
You can keep renewing an inactive license, as long as you meet the renewal requirements, including CE.
Texas has no commutable distance requirement for originators, and remote work is allowed under SML's rules.
Your sponsoring company must renew its own license or registration too. If it does not, your license lapses to inactive.

Step 7: Use temporary authority if you are moving to Texas

If you are already licensed as an MLO in another state, or you are a registered MLO at a depository institution such as a bank or credit union, you may qualify for temporary authority. It lets you originate in Texas for up to 120 days while your SML application is pending. SML has to grant and recognize it in NMLS, and it requires a pending application, among other requirements in 7 Tex. Admin. Code 55.109. New originators with no prior license or registration generally do not qualify, so plan on finishing your education, test, and review before you take your first Texas application.

After you are licensed

Annual renewal and CE

Texas RMLO licenses renew every year during the NMLS renewal period, November 1 through December 31. To renew, you need:

8 hours of NMLS-approved CE each year: 3 hours federal law, 2 hours ethics, 2 hours non-traditional lending, and 1 elective hour. You do not need CE in the same year you completed your pre-licensing education and got your first license.
The SML renewal fee of $90, plus the NMLS annual processing fee of $35.

Finish CE early. Course providers have up to 7 calendar days to report completions, and NMLS will not let you request renewal until your CE shows up. SML says it cannot override that.

If you miss December 31, your license expires on January 1 and you cannot originate. You can still reinstate it before March 1 by paying 150% of the renewal fee ($135 at the current $90 fee), but you cannot originate until SML approves the reinstatement. After the end of February, you have to apply for a new license. Our NMLS renewal and CE guide covers the national side of the process.

Ongoing rules that matter day to day

Update your MU4 within 10 days of any material change (7 Tex. Admin. Code 55.104).
Advertising must include the company's name and NMLS ID and, for an originator's ad, your name and NMLS ID. If an ad states a rate, it must be shown as an APR under Regulation Z. SML calls missing APRs one of the most common violations.
Dual roles. Texas does not ban being both the RMLO and the real estate agent on the same deal, but you must give the client a written disclosure in advance and get written consent (Finance Code 157.024(a)(10)). Lender guidelines may still prohibit it.
SML does not issue paper licenses. Anyone can verify your license on NMLS Consumer Access.

Texas-SML vs the federal minimum

Requirement	SAFE Act minimum	Texas-SML
Pre-licensing education	20 hours	23 hours (20 + 3 Texas law)
Annual CE	8 hours	8 hours
Exam	SAFE MLO test	SAFE MLO test (no state test)
Education expiration	Varies by state	Must be within 3 years of application
Recovery fund or bond	State chooses	$20 recovery fund fee
Conviction definition	Federal rules	Includes deferred adjudication

Sources

Checked October 24, 2026:

Frequently asked questions

How many hours of pre-licensing education does Texas require for an MLO license?

Texas-SML requires 23 hours of NMLS-approved education: 3 hours of federal law, 3 hours of ethics, 2 hours of non-traditional mortgage lending, 12 elective hours, and 3 hours of Texas law. You can take a 23-hour Texas comprehensive course or a 20-hour course plus a 3-hour Texas elective. The education must be completed within 3 years before you apply.

How much does a Texas MLO license cost?

SML charges a $125 application fee and a $20 recovery fund fee for an original license. NMLS adds a $35 setup fee, $36.25 for the criminal background check with live scan fingerprints, $15 for the credit report, and $110 for the SAFE test. That is $341.25 before the cost of your pre-licensing course.

Does Texas have a state-specific MLO exam?

No. Texas uses the national SAFE MLO test with Uniform State Content, which has 120 questions (115 scored) and a 75% passing score. The Texas-specific material is covered in your 3 hours of Texas law in pre-licensing education, not on a separate state test.

Can I get a Texas MLO license with deferred adjudication?

It depends on the offense and timing. Texas Finance Code 157.0131 treats deferred adjudication as a conviction for licensing. So a felony with deferred adjudication in the 7 years before you apply, or one involving fraud, dishonesty, breach of trust, or money laundering at any time, would block the license. Other cases go through SML's character and fitness review.

Do I need a minimum credit score for a Texas MLO license?

No. SML does not decide financial responsibility on credit score alone. It looks at your overall history, and items like judgments, tax liens, charge-offs, collections, and deficiency foreclosures can hurt. Medical-only judgments and delinquent student loans are not considered, and SML may offer a conditional license if you are on a payment plan.

When does a Texas MLO license expire?

Texas RMLO licenses renew each year between November 1 and December 31, with 8 hours of CE and a $90 SML renewal fee. If you do not renew by December 31, the license expires January 1. You can reinstate before March 1 at 150% of the renewal fee, but you cannot originate until it is approved.

Get ready for the SAFE test

Your 23 hours of education get you eligible. Passing the SAFE test is what gets you licensed, and the test is 120 questions (115 scored) in 190 minutes with a 75% passing score. MLO Pass is exam prep, not an NMLS-approved PE course, so it does not count toward your education hours. A one-time $99 unlock gives you about 1,154 questions across all five domains: Mortgage Loan Origination Activities 27%, Federal Mortgage-Related Laws 24%, General Mortgage Knowledge 20%, Ethics 18%, and Uniform State Content 11%. Pay once and keep it for life, with no subscription. Use code MLOPASS for a $20 credit at checkout. Sign up to pass your test

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