TX MLO study guide
TX MLO · Work through your exam, one topic at a time.
The Texas Mortgage Loan Originator (MLO) license is the state credential a person needs to originate residential mortgage loans in Texas, and it is issued by the Texas Department of Savings and Mortgage Lending. To earn it, a candidate must satisfy the SAFE Act requirements - pre-licensure education, background and credit checks, and testing - and then pass the NMLS-administered MLO test. The TX MLO study guide has 5 sections and about 1,749 words.
01Mortgage Loan Origination Activities
Origination runs from first borrower contact to funding and sale into the secondary market: inquiry and marketing → application intake → disclosures → processing (verifications, title, appraisal, insurance) → underwriting → clear-to-close → closing and disbursement → servicing transfer or sale. A licensed MLO takes applications, presents loan options, quotes rates and fees, and locks loans.
331 words, about 2 min02General Mortgage Knowledge
Conventional loans follow Fannie Mae and Freddie Mac guidelines, and the conforming loan limit is announced annually by the FHFA, so understand the concept rather than memorizing one year's figure. FHA insures loans with low down payments (3.5% down with a 580+ score) and charges both an upfront and an annual mortgage insurance premium.
346 words, about 2 min03Mortgage Loan Inquiry and Application Process
For mortgage disclosure purposes, an application exists once you have six pieces of information: borrower name, monthly income, Social Security number, property address, estimated property value, and loan amount. A signed 1003 or a fee is not required to trigger disclosure obligations.
361 words, about 2 min04Ethics
An MLO owes candor, confidentiality, and fair dealing. Say what you can deliver: advertising "about 5%" when pricing is 6.5% is deceptive under UDAAP and the Texas Deceptive Trade Practices Act.
333 words, about 2 min05Federal and State Mortgage-Related Laws
Know the core framework: TILA/Reg Z (disclosures, APR, rescission), RESPA/Reg X (settlement costs, escrow, §8, servicing transfers), ECOA/Reg B (adverse action, monitoring data), HMDA (data reporting), FCRA (credit reports and permissible purpose), GLBA (privacy and safeguards), and the SAFE Act (licensing). The CFPB writes and enforces Reg Z, Reg X, and Reg B.
378 words, about 2 min