Texas OCCC Transition Plan

New Mortgage Loan Originator Requirement:

Residential Mortgage Loan Originators (MLO) should consult with their employer before logging onto NMLS and completing a Form MU4.

All mortgage loan originators employed by that company must complete and submit a Form MU4 through NMLS by July 31, 2010.

NOTE: If you have submitted a Form MU4 in another state, then you do not need to re-enter your record into NMLS. You will only need to identify the appropriate license in Texas and complete a few state specific fields.

MLOs in Texas are encouraged to complete the required 20 hours of pre-licensing education and pass the National Component of the SAFE test as soon as possible and the State Component when available.

MLOs in Texas who have certain criminal background issues or known derogatory credit information are strongly urged to address those issues before applying for a license. Criminal background issues that will affect an individual's ability to obtain a license include, but are not limited to, the following:

Convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign or military court during the seven-year period preceding the date of application
Convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign or military court at any time preceding the date of application, if the felony involved an act of fraud, dishonesty, breach of trust, or money laundering

Credit issues that may affect an individual's ability to obtain a license include, but are not limited to, the following:

Current outstanding judgments (other than imposed solely as a result of medical expenses)
Current outstanding tax liens or other government liens and filings
Foreclosures within the past three years
A pattern of seriously delinquent accounts within the past three years

Loan originators must meet the additional requirements listed below prior to application approval.

Additional requirements will include:

Complete 20 hours of NMLS approved pre-licensure education courses
A Passing Score on both the National and State components of the SAFE Test
Satisfactory criminal background check including finger prints
Agency review of a satisfactory credit report
Submit to the agency the Employment Verification Form (Agency from ADM98)

Current/Prospective Company Licensees/Registrants:

Currently companies holding a license issued by the Texas Office of Consumer Credit Commissioner (TX-OCCC) that conduct real estate secured transactions in Texas will not be able to transition onto the Nationwide Mortgage Licensing System (NMLS). Initial and transfer applications, as well as renewals will continue to be processed directly at the agency. Therefore, these companies are not required to submit any forms to NMLS for licensing with the TX-OCCC. Additionally, at this time these companies will not be able to sponsor their residential mortgage loan originators (MLO).

Current or prospective TX-OCCC licensees that conduct real estate secured transactions should ensure that their TX-OCCC MLOs take the required steps to become licensed with the TX-OCCC by July 31, 2010.

Companies holding a license issued by the TX-OCCC that conduct real estate secured transactions in Texas, will need to provide the agency an “Employment Verification” (agency form ADM98) for each of their licensed MLOs. Additionally, no later than August 30, 2010, the companies must provide a list of TX-OCCC licensed MLOs employed by the company to the agency. Thereafter, any change in the MLO list must be provided to the agency within 30 days of the change.