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200+ Free TX MLO Practice Questions

Pass your Texas Mortgage Loan Originator Exam exam on the first try — instant access, no signup required.

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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 200+ question experience with AI tutoring.

1How many hours of NMLS-approved pre-license education are required for an MLO license in Texas?
A.10 hours
B.15 hours
C.20 hours
D.30 hours
Explanation: Texas requires 20 hours of NMLS-approved pre-license education under the SAFE Act. This includes 3 hours of federal law, 3 hours of ethics, and 2 hours of non-traditional mortgage lending.
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: The Texas Department of Savings and Mortgage Lending (SML) is the primary regulatory agency overseeing mortgage loan originators in Texas. It administers the Texas SAFE Act and handles MLO licensing through NMLS.
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.
7What is the minimum surety bond required for MLO licensees in Texas?
A.$10,000
B.$25,000
C.$50,000
D.$100,000
Explanation: Texas requires a minimum surety bond of $25,000 for MLO licensees. This bond protects consumers against losses from the MLO's failure to comply with state mortgage lending laws.
8What is the passing score required on the Texas MLO state exam?
A.65%
B.70%
C.75%
D.80%
Explanation: A passing score of 75% is required on the Texas MLO state exam. Candidates must answer approximately 41 out of 55 questions correctly to pass the state component.
9Under Texas law, what is the cooling-off period for home equity loans?
A.No cooling-off period
B.12 calendar days from application to closing
C.3 business days
D.30 calendar days
Explanation: Texas requires a 12-calendar-day cooling-off period from the date the borrower applies for a home equity loan to the date the loan can close. This unique Texas protection gives borrowers ample time to consider the terms before committing to the transaction.
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

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • 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.