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277+ Free TX MLO Practice Questions

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2026 Statistics

Key Facts: TX MLO Exam

75%

Passing Score

NMLS

55 Q

State Exam Questions

NMLS UST

20 hrs

Pre-License Education

TX Dept of Savings & Mortgage Lending

$25,000

Surety Bond

Texas

The Texas MLO state exam covers state-specific mortgage laws administered by the TX Department of Savings and Mortgage Lending. Combined with the national NMLS SAFE exam, candidates must pass both components to originate mortgages in Texas. Texas is a non-judicial foreclosure state with unique homestead protections enshrined in the Texas Constitution. The state has strong borrower protections including restrictions on home equity lending and requires compliance with the Texas SAFE Act.

Sample TX MLO Practice Questions

Try these sample questions to test your TX MLO exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 277+ question experience with AI tutoring.

1How many hours of NMLS-approved pre-licensing education does Texas-SML require for a new residential MLO license?
A.8 hours
B.15 hours
C.20 hours of national SAFE education only
D.23 hours (20 hours national SAFE education plus 3 hours of Texas-specific law)
Explanation: Texas Department of Savings and Mortgage Lending (TX-SML) requires 23 hours of NMLS-approved pre-licensing education: the federal SAFE Act minimum of 20 hours (3 federal law, 3 ethics, 2 nontraditional mortgage lending, and 12 electives) plus 3 hours of Texas-specific law. TX-SML will not count other states' state-specific hours toward the elective requirement. (Texas-OCCC licensing for certain secondary/home-equity originators follows the 20-hour national minimum without the extra 3 TX hours.)
2Which agency is the primary regulator of mortgage loan originators in Texas?
A.TX Real Estate Commission
B.TX Department of Savings and Mortgage Lending
C.TX Department of Insurance
D.TX Banking Department
Explanation: For primary residential mortgage origination, the Texas Department of Savings and Mortgage Lending (SML) is the primary state regulator and administers Texas SAFE Act licensing under Finance Code Chapters 156/157/180. The Office of Consumer Credit Commissioner (OCCC) separately licenses certain originators of secondary mortgage loans and home-equity loans when the company is under OCCC authority. TREC regulates real estate brokerage, not MLO licensing.
3What type of foreclosure is primarily used in Texas?
A.Judicial foreclosure
B.Non-judicial foreclosure
C.Strict foreclosure
D.Both equally
Explanation: Texas primarily uses non-judicial foreclosure through a power-of-sale process. Texas foreclosure sales must occur on the first Tuesday of each month at the county courthouse, making it one of the most distinctive foreclosure procedures in the nation.
4What is unique about the timing of foreclosure sales in Texas?
A.Sales can occur any day
B.Sales must occur on the first Tuesday of each month
C.Sales only happen in December
D.Sales must occur on the last Friday of each month
Explanation: Texas foreclosure sales must occur on the first Tuesday of each month between 10:00 AM and 4:00 PM at the county courthouse. This distinctive requirement is unique to Texas and is a heavily tested topic on the state MLO exam.
5What are Texas's unique homestead protections under the Texas Constitution?
A.No homestead protections exist
B.The Texas Constitution provides strong homestead protections including restrictions on forced sale and home equity lending
C.Homestead protections only apply to farms
D.Protections only apply to properties over $500,000
Explanation: The Texas Constitution, Article XVI, Section 50, provides some of the strongest homestead protections in the nation. These include restrictions on forced sale of the homestead and stringent requirements for home equity lending, including an 80% LTV cap and cooling-off periods.
6Under Texas Constitution Section 50(a)(6), what is the maximum loan-to-value ratio for a home equity loan?
A.70%
B.80%
C.90%
D.100%
Explanation: Under the Texas Constitution Section 50(a)(6), home equity loans are capped at 80% loan-to-value ratio. This means the total of all liens on a homestead property cannot exceed 80% of the fair market value at the time the equity loan is made.
7Under Texas Finance Code Chapters 156/157, which statement best describes surety-bond or financial-responsibility requirements for residential mortgage licensing?
A.Every individual MLO must personally post a flat $25,000 surety bond
B.Mortgage companies must meet SML financial-responsibility standards (such as minimum net worth or an authorized surety-bond alternative); individual sponsored MLOs are not required to post a personal surety bond
C.No financial-responsibility requirements apply to any mortgage company
D.Only federally chartered banks must post a $100,000 individual MLO bond
Explanation: Texas does not require each individual residential MLO to post a personal surety bond as a condition of the originator license. Financial-responsibility requirements (minimum net worth and/or surety-bond alternatives that scale with activity) apply at the company/servicer level under Finance Code Chapters 156, 157, and 158. Individual MLOs must still be sponsored by a properly licensed or registered entity.
8What examination must a Texas MLO applicant pass, and what is the minimum passing score?
A.A separate 55-question Texas-only state exam with a 65% passing score
B.The SAFE MLO National Test with Uniform State Content (UST) with a score of at least 75%
C.Only a Texas Finance Commission oral interview
D.A 200-question federal-only exam with an 80% passing score
Explanation: Texas (both SML and OCCC) adopted the NMLS Uniform State Test. Applicants take the SAFE MLO National Test with Uniform State Content — a single combined exam (120 items: 115 scored + 5 unscored) — and must score at least 75%. There is no separate standalone Texas state-component exam of 55 questions.
9Under Texas Constitution Article XVI, Section 50(a)(6), when may a home equity loan close relative to the 12-day cooling-off period?
A.Immediately upon application with no waiting period
B.No earlier than the 12th calendar day after the later of (i) the owner's loan application or (ii) the owner's receipt/signing of the required Notice Concerning Extensions of Credit
C.Three business days after the Closing Disclosure only (TILA rescission substitutes for the 12-day rule)
D.Thirty calendar days after appraisal delivery
Explanation: Texas Constitution art. XVI §50(a)(6)(M)(i) requires a 12-calendar-day cooling-off period. The clock starts on the later of the date the owner submits the loan application or the date each owner receives/signs the constitutionally required Notice Concerning Extensions of Credit. Closing before day 12 is a constitutional defect.
10What notice period is required before a non-judicial foreclosure sale in Texas?
A.No notice required
B.At least 21 days before the sale, after a 20-day cure period
C.60 days
D.1 year
Explanation: Texas requires lenders to send a notice of default and give the borrower at least 20 days to cure. If the borrower does not cure, the lender must then provide at least 21 days' notice of the foreclosure sale date, which must be on the first Tuesday of the month.

About the TX MLO Exam

The Texas MLO state exam tests knowledge of Texas-specific mortgage laws, licensing requirements, and consumer protection regulations. This exam is taken alongside the national NMLS SAFE exam component.

Questions

55 scored questions

Time Limit

1 hour 30 minutes

Passing Score

75%

Exam Fee

$110 (TX Department of Savings and Mortgage Lending)

TX MLO Exam Content Outline

25%

TX Licensing Requirements

State-specific education, renewal, and licensing requirements

25%

TX Mortgage Law

State mortgage statutes, homestead protections, and lending regulations

20%

Consumer Protection

State disclosure requirements, borrower rights, fair lending

15%

Regulatory Authority

TX Dept of Savings and Mortgage Lending oversight, enforcement, and compliance

15%

Foreclosure Procedures

Texas-specific foreclosure process, timelines, and remedies

How to Pass the TX MLO Exam

What You Need to Know

  • Passing score: 75%
  • Exam length: 55 questions
  • Time limit: 1 hour 30 minutes
  • Exam fee: $110

Keys to Passing

  • Work through all 277 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

TX MLO Study Tips from Top Performers

1Master the Texas Constitution's homestead protections — Article XVI, Section 50 is heavily tested and unique among all states, especially the home equity lending restrictions under Section 50(a)(6)
2Study the Texas non-judicial foreclosure process, including the required 20-day notice period, the first-Tuesday-of-the-month sale requirement, and borrower rights during foreclosure
3Know the TX Department of Savings and Mortgage Lending's enforcement powers, including examination authority, administrative penalties up to $25,000 per violation, and license revocation
4Understand the Texas SAFE Act requirements and how they interact with federal SAFE Act provisions for MLO licensing
5Review Texas home equity loan restrictions including the 80% loan-to-value cap, the 12-day cooling-off period, and the prohibition on prepayment penalties on home equity loans

Frequently Asked Questions

What is the Texas MLO exam?

The Texas MLO exam is the state-specific component of the NMLS licensing test. It covers Texas mortgage laws, licensing requirements administered by the TX Department of Savings and Mortgage Lending, and state consumer protection regulations. You must pass both this state exam and the national SAFE exam to originate mortgages in Texas.

How many questions are on the TX MLO state exam?

The Texas MLO state exam has 55 questions with a 1 hour 30 minute time limit. You need a score of 75% (approximately 41 correct answers) to pass. The exam is administered through NMLS at Prometric testing centers.

What Texas-specific topics should I study?

Focus on the Texas Constitution's homestead protections, the Texas SAFE Act, non-judicial foreclosure procedures, the TX Department of Savings and Mortgage Lending's regulatory authority, Texas home equity lending restrictions (Section 50(a)(6)), the surety bond requirement, and state-specific consumer protection disclosures.

What are the TX MLO license requirements?

Texas requires 20 hours of NMLS-approved pre-license education, passing both the national and state NMLS exams, a criminal background check and credit report, a $25,000 surety bond, and registration through NMLS. Renewal requires annual continuing education including Texas-specific hours.