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Mortgage Net Branch Texas
Want to open a mortgage net branch in TX but not sure what to do? Texas is Working Hard to Accomplish Full Compliance with New National Licensing Laws
The State of Texas wants those who are in the mortgage business, which includes operating mortgage net branches, to be aware of the changes in the national licensing laws and how they will affect mortgage companies and their net branches. For this reason, the State has been working hard to make sure that full compliance is being met.
Some changes in the national licensing laws affect a licensee's status. During August of 2010, the State began using the Nationwide Mortgage Licensing System (NMLS) for approval and issuance of mortgage broker entity licenses, as well as those for mortgage brokers and loan officers. Before then, the Texas Department of Savings and Mortgage Lending (TX SML) was responsible for mortgage business and individual licensing.
This means that as of September of 2010, any mortgage company that had not completed the transition process needed to convert licenses from the State to the national licensing organization would be considered as applying for a new license. In other words, there would no longer be license renewals if a net branch or its "home office" had not completed the transition process; it would be as if the company was first being established.
This is the biggest change that would affect those in the mortgage business. The other requirements for being licensed as a mortgage broker (so that you can operate a net branch) remain the same; some are listed here:
- Net Worth: $25,000 if you want to avoid having to obtain a surety bond. Otherwise, you will have to obtain one.
You will need to provide an audited financial statement showing your net worth, no matter what the amount of it is if you want to be considered for a mortgage net branch in Texas.