Education FAQ - Pre-licensure Education (PE)

Q. What are MLO Pre-Licensure Education (PE) requirements?

A. Federal and state law (SAFE Act) requires state-licensed mortgage loan originators (MLOs) to complete PE. The minimum requirement is 20 hours of NMLS approved education which includes the following:
  1. Three (3) hours of Federal law and regulations;
  2. Three (3) hours of ethics that shall include instruction on fraud, consumer protection, and fair lending issues;
  3. Two (2) hours related to lending standards for the nontraditional mortgage product market; and
  4. Twelve (12) hours of undefined instruction on mortgage origination
Attention: Many state agencies also have state-specific PE requirements. See the for details.

Q. When do I need to complete the 20 hours of PE?

A. The 20 hours of PE (as well as any state-specific PE) is required to be completed prior to license application.

Q. When do I need to complete PE for Temporary Authority to Operate?

A. MLOs need to complete federal and state education requirements within 120 days of their Temporary Authority start date. See the State-Specific Education Requirements for the Education and for details.

SMART Temporary Authority Deadlines: The following deadlines take into consideration the time required to complete education, for information to be reported, and for the education record to be updated in NMLS.
SMART TA
Requirements and Education Record is Updated within 90 Days of Temporary Authority
TA At Risk
Requirements and Education Record is Not Updated at 100 Days of Temporary Authority
PROBABLY GUARANTEED LOSS OF TA
Requirements and Education Record Not Updated at 100 Days of Temporary Authority

Q. Will NMLS block application for a license if the MLO is not PE compliant?

A. Yes. NMLS will validate the MLO is compliant with BOTH Federal and State agency requirements prior to application submission. NMLS will also require completion of pending CE requirements for the last year the MLO held the license if the MLO is applying for a previously held license.

Q. Does PE expire?

A. PE expires after three (3) years in accordance with the following rule:

See the PE Expiration Policy

Q. When is the PE Expiration policy enforced?

A. Several states have already or are in the process of enacting the PE Expiration policy. Check on an agency’s status in the State-Specific Education Requirements .