Question 38
Domain 2: Mortgage Loan Origination ActivitiesHow many hours of NMLS-approved pre-licensing education are required before applying for an MLO license?
Correct answer: C
Explanation
The SAFE Act requires an MLO applicant to complete at least 20 hours of NMLS-approved pre-licensing education before licensure. This includes federal law, ethics, nontraditional mortgage products, and electives, which is why the required amount is "20 hours."
Why each option is right or wrong
A. 10 hours
B. 15 hours
C. 20 hours
Under the SAFE Mortgage Licensing Act, an individual may not be licensed as a mortgage loan originator unless they have completed at least 20 hours of NMLS-approved pre-licensing education. The federal minimum is set by 12 U.S.C. § 5104(c)(1), and the content must include 3 hours of federal law and regulations, 3 hours of ethics, 2 hours of nontraditional mortgage lending, plus 12 hours of electives.
D. 24 hours