3 Hour TX-SML SAFE: Texas Mortgage Lending Laws

This course is designed to prepare candidates to take the exam to become a state-licensed mortgage loan originator in Texas under the Texas Department of Savings and Mortgage Lending (TX-SML). This 3-hour course covers Texas specific rules and regulations, and is required as part of the 23 hours of prelicensure education needed to become a Texas mortgage loan originator.

Topics and Learning Objectives

This course consists of five modules and a final exam:

1. Mortgage Licensing Terminology
2. Texas Requirements for Licensure
3. Complying with Texas Lending Regulations
4. Home Equity Loans, Reverse Mortgages, and Foreclosures
5. The Texas Department of Savings and Mortgage Lending
6. Final Exam 

Total study time: 3 credit hours (150 minutes)

Module 1: Mortgage Licensing Terminology

First off, we'll explain the Texas SAFE Act, its legislative history, and will outline the licensing regulations of the residential mortgage industry in the State of Texas. The intention of the act is to align state regulations with new Federal guidelines in order to promote honesty, education, and professionalism. The Texas SAFE Act’s intended effect is to protect Texas consumers and ensure stability in the Texas housing market and to ensure diversity and availability of mortgage funding. We'll also cover definitions that are outlined in the act.

Module 2: Texas Requirements for Licensure

Individuals must obtain authorization from the state before they may assist a client with the completion of a residential mortgage loan application. Texas has specific requirements that must be complete before this authorization can be granted. This module will explain the steps that must be completed by candidates to obtain an mortgage loan originator license.

Module 3: Complying with Texas Lending Regulations

After licensing, there are many regulations that must be followed to protect the public and the residential mortgage lending industry from actions that could harm them. In this module we'll review acts and practices that could be considered deceitful and improper. We'll also review actions that licensees must follow to keep their licenses in good standing with the Department of Savings and Mortgage Lending.

Module 4: Home Equity Loans, Reverse Mortgages, and Foreclosures

In this module, we'll cover specific loans and foreclosure rights afforded to lien holders and defaulting borrowers. We'll go into depth about Texas home equity loans and regulations for reverse mortgages that are specific to our state.

Module 5: The Texas Department of Savings and Mortgage Lending

Title 7, Part 4 of the Tex. Admin. Code defines the Texas Department of Savings and Mortgage Lending (TX-SML). This department is responsible for overseeing the financial industry in Texas, whether it be banks, investments, mortgage loans, or deposits. This module will explain the structure of the TX-SML and its acting Commissioner.

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID, but don't remember what it is:

• Login into NMLS,
• Click on the Composite View tab, then
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center