Question:

What is the Mortgage Broker License Act (MBLA)?

Answer:

The Mortgage Broker License Act (MBLA) is the Texas regulation of mortgage broker practice. Not only mortgage brokers but real estate agents and sales reps need to abide by the MBLA.

Common Mortgage Broker License Act (MBLA) Requirements

If you are applying for a mortgage broker license in Texas and your Texas real estate broker license is expired or nonexistent, you will not be able to meet the prerequisites for obtaining mortgage broker license in Texas. To be exempt from the Act, you have to be working on a contract for a licensed mortgage banker.

A mortgage broker acting as a real estate agent in the same loan transaction may need to obtain permission from the client as per the Mortgage Broker License Act (MBLA) in Texas.

According to the Mortgage Broker License Act (MBLA), a mortgage broker will need a physical office to practice as a mortgage broker. Internet mortgage brokers cannot operate in Texas without meeting the office and license requirements.

If you are licensed as a mortgage broker, there are certain requirements that have to be met before the person is allowed to practice in Texas. A mortgage broker has to show evidence of $25,000 net worth assets, or provide a surety bond of $50,000.

You have to consult the Mortgage Broker License Act (MBLA) for details on how to acquire mortgage broker's license in Texas, and when exemption of the requirements applies.

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