Lesson Seven – Continuing Education

Continuing Education (CE) – State-Licensed Loan Originators Section 1506-Standards for State License Renewal

Each licensed mortgage loan origi­nator must attend at least 8 hours of continuing education each year. Individual states can require more hours of continuing education.

 SAFE Act Annual CE Requirements

  • 3 hours Federal law & regulations
  • 2 hours ethics, to include fraud, consumer protection and fair lending issues; and
  • 2 hours training regarding non-traditional loan products.
  • 1 hour of undefined instruction on mortgage origination.

Many states have additional requirements on top of the minimum requirement of 8 hours.  If a mortgage loan originator is licensed in more than one state, then they must complete the minimum standards of the 8 core CE requirements plus any additional state required CE hours.  Many states elected to have the 1 hour elective as the 1 hour state requirement.  Most states that have additional CE requirements have placed the course curriculum to cover that states law.   It is the responsibility of the mortgage loan originator to verify any additional CE requirements for the states they are licensed in. all CE requirements must be completed prior to license renewal deadline on December 31st of each year.

Refer to Appendix C for the State-Specific Education Requirements PE and CE Handbook, available through the Nationwide Mortgage Licensing System (NMLS) Web site.

 NMLS Course Providers

The SAFE Act requires the NMLS to approve pre-licensure and continuing education course providers and courses however, 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 applying through the NMLS.

The NMLS provides information concerning education requirements and administers the process for completing it, but state-licensed mortgage loan originators should refer to their state agencies regarding any specific details associated with meeting the education requirements.

Annual CE

The deadline to complete your continuing Education is December 31st of each year.  Many States prohibit licensees from submitting an application to renew their license if they have not completed CE. Since it may take as long as seven (7) days for a course provider to report a course completion into NMLS, many States are encouraging mortgage loan originators not to wait until the last minute to try to complete CE or they may be prevented from submitting for renewal on time.  Some states, such as Georgia will assess a $100 late fee outside of NMLS if CE is completed after October 31, so be sure to check with your state to determine if there are additional CE deadline, requirements, or fees.

The NMLS System Checks to Verify CE Completion Prior to Renewal. This system enables a state to choose to prevent a mortgage loan originator from submitting for licensure renewal if he/she has not completed 8 hours of CE. If the system detects that the mortgage loan originator has not completed CE in any year immediately following PE, the system is will prevent the mortgage loan originator from renewing their license.

Successive Year Rule

Mortgage loan originators must complete 8 hours of CE every year, and an MLO may not take the same course two years in a row.

Late CE

If a mortgage loan originator was required to take continuing education (CE) and failed to do so, then they must complete a Late CE course in order to satisfy the requirement for licensure. The NMLS provides a list of late CE courses on their site.  Only the courses listed in the Late CE Catalog (and no others), may be used to make-up CE missed in that licensing renewal year.

If a mortgage loan originator is returning to the industry, the application process for a new license requires satisfaction of any CE deficiency for the last year licensed. Only the courses listed in the Late CE Catalog (and no others), may be used to make-up CE requirements in that year.

License Renewal

Beginning November 1st of each year licensees can begin the renewal process.  The renewal process begins at the NMLS site. The renewal process includes attesting that you have met the requirements listed in the attestation language. Check with your company to see if they will be submitting the renewal for you.  Some companies may wish to submit the renewal request on your behalf; however, you must still log in to the NMLS and complete the attestation first.

Refer to the Renewal Handbook, available through the Nationwide Mortgage Licensing System (NMLS) Web site.