The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requires that state-licensed mortgage loan originators (MLOs) complete annual continuing education. In order to meet continuing education requirements state-licensed MLOs must complete 8 hours of NMLS approved education which include the following:
For annual continuing education, the SAFE Act requires state-licensed MLOs to complete:
a. Three hours of Federal law and regulations;
b. Two hours of ethics that shall include instruction on fraud, consumer protection, and fair lending issues;
c. Two hours of training related to lending standards for the nontraditional mortgage product market; and
d. One hour of undefined instruction on mortgage origination.
While the SAFE Act requires NMLS to approve pre-licensure and continuing education courses, it is individual state law that compels mortgage loan originators to take the pre-licensure and continuing education as a requirement for state licensure. Many state agencies require that pre-licensure education be complete prior to submitting an application through NMLS. NMLS provides information concerning education requirements and administers the process for completing it, but state-licensed MLO’s should refer to their state agencies regarding the specific details associated with meeting the education requirements.