How To Get a Property Tax Lender Mortgage License In Texas

A property tax lender license is issued in Texas by the Office of Consumer Credit Commissioner. Although not precisely a mortgage license, it is similar to a mortgage due to its relation to real estate. Although mortgage licenses in Texas typically apply for residential properties only, both residential and commercial properties apply for property tax lenders.

A property tax loan is one taken out to pay for property taxes on a residence, in which a lien is placed on the property. If the borrower fails to pay the loan, the property tax lender can foreclose on the property. This causes the house to be sold, and the proceeds can be accessed by the lender to pay off the defaulted loan.

Texas requires one property tax lender license for the first office and a branch license for the second or other additional offices. So if you have 3 total offices, you would need 2 branch licenses in addition to the main one.

Also, even if you just negotiate or service a property tax loan, you must get this license. Servicers are not always the actual lender, as they may just process the money. They generally must also get a license.

Texas property tax lender license applicants use the NMLS MU1 form.

http://mortgage.nationwidelicensingsystem.org/licensees/resources/LicenseeResources/Company%20%28MU1%29%20Form%20Filing%20Instructions.pdf

There is an $800 license fee. Also, you must have net assets of $25,000 per location. Principals of the lending company must pass a criminal background check. According to NMLS, some experience requirements apply. They don’t say exactly how much experience. But there must be a qualifying individual at each location. It is best to have a qualifying individual with at least 5 years of experience in the loan industry.

Branch fees are $820. Use the MU3 form for each branch.

http://mortgage.nationwidelicensingsystem.org/licensees/resources/LicenseeResources/MU3%20New%20App.pdf

The company would also generally be hiring licensed mortgage loan originators. Under Texas law, MLOs are also required for property tax loans. The Texas Office of Consumer Credit Commissioner also licenses loan originators. Although there is no education or exam for the lender license, MLOs must meet education and testing qualifications. I have written a separate article on that license type. You can find it by using the “Texas mortgage license” tag below.

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