There are a number of steps involved with becoming a licensed mortgage loan originator. But the education and training don’t just stop once you’ve received your MLO license.
Mortgage loan originators are also required to complete continuing education (CE) coursework on a routine basis, as a part of the criteria required to maintain their license.
The NMLS has strict rules governing continuing education that all MLOs must follow to ensure compliance with the federal SAFE Act. If you work as a mortgage loan originator and fail to complete your continuing education, it could jeopardize your ability to renew your MLO license.
Understanding and completing your MLO continuing education requirements is an important part of work as a mortgage loan originator. Using the right continuing education provider can also mean the difference between staying in compliance or having to jump through additional hoops to try and get your license reinstated.
JPMLO makes completing the necessary MLO continuing education coursework a breeze so you can always stay in compliance, spend less time in the classroom, and more time helping borrowers with their home financing.
Here is everything you need to know about both the federal and state requirements pertaining to MLO continuing education so that your MLO license remains in good standing.
MLO Continuing Education Requirements
NMLS-approved education is required for a mortgage loan originator license. There are both federal and state requirements for continuing education. Some state requirements overlap with those federally mandated, while others require additional hours or specified coursework.
Utilizing your NMLS account allows you to track your completed continuing education courses as well as any crucial deadlines related to completing your necessary continuing education hours.
NMLS System and Notifications
You can find a list of NMLS-approved MLO continuing education providers by logging into your NMLS account, however, it’s important to note that there are certain restrictions for which courses satisfy the MLO continuing education requirement.
For example, you cannot complete the same CE course two years in a row. The SAFE Act explicitly prohibits MLOs from taking the same courses each year1.
Also, MLOs continuing education is still required the same year you are first licensed unless your pre-license education was also completed in the same year1.
Another exception can be warranted if you obtain your MLO license between November 1st and December 31st. Getting licensed between these dates will waive the required CE for that current year1.
The NMLS sends out continuing education notifications to those MLOs that need to be completed on a monthly basis. It also provides SMART and At-Risk-to-Miss deadline dates you can note to gauge CE tracking in conjunction with submitting your MLO application for renewal1.
Federal Requirements
The SAFE Act requires all mortgage loan originators to complete continuing education annually as part of the MLO license renewal process. Mortgage loan originators must complete a minimum of 8 hours of training in the following areas1:
- 3 hours – Federal Laws and Regulations
- 2 hours – Ethics (including concepts on fraud, consumer protection, and fair lending)
- 2 hours – Non-traditional Mortgage Products
- 1 hour – Electives (undefined) and/or state-specific training
Continuing education can be completed exclusively online or through self-paced courses so long as the training is provided by an approved provider like JPMLO.
State-Specific Requirements
State-licensed mortgage loan originators are also required to complete a minimum of 8 hours of NMLS-approved continuing education annually. For the most part, the state minimum can overlap and be satisfied alongside the 8 hours required by federal law.
However, certain states may have additional requirements over and above the 8-hour minimum. When you are completing your continuing education training, it’s important you identify which states you are licensed to do business in.
MLOs that are licensed in multiple states may need to complete additional training to meet state-specific continuing education requirements. Here is a list of states that require extra MLO continuing education hours1:
- New Jersey: 4 additional hours; 12 hours total
- New York: 3 additional hours; 12 hours total
- Oregon: 2 additional hours; 10 hours total
- Utah: 2 additional hours; 10 hours total
- Washington: 1 additional hour; 9 hours total
- West Virginia: 1 additional hour; 9 hours total
How Much Does MLO Continuing Education Cost?
There is no set rule for how much MLO continuing education must cost. This means costs can vary across a variety of different approved CE providers.
A few factors to consider that could impact the cost of your MLO continuing education include which specific state minimums you need to satisfy, whether you are looking to purchase a training bundle or individual training, and if you will be attending the training in person or online.
Nevertheless, as an MLO you can expect to pay anywhere between $75-200 for continuing education coursework, depending on if you purchase individual courses or opt for the all-in-one set.
What If I Don’t Complete CE Training on Time
MLO continuing education training may seem like a lot, especially trying to balance it with other professional duties. However, if you fail to complete all your continuing education on time, it can prevent you from renewing your MLO license.
The NMLS requires that all necessary CE training must be completed by 12/31 of the corresponding year. However, the system also needs time to receive the appropriate CE training certifications from your CE provider and to update your NMLS record.
It’s recommended that you complete your MLO continuing education coursework a few weeks before the deadline. If you miss the NMLS deadline, your account will be flagged, and you won’t legally be able to perform any duties as a mortgage loan originator.
You will then have to go through the process of trying to reactivate your account, complete any late CE requirements, and pay any applicable fees to have your license reinstated. Prolonged inactivity may require you to go through the MLO application process all over again (including the completion of pre-licensing education).
Finding the Right CE Courses
It can be burdensome to research and find the right training course necessary to complete your MLO continuing education. JPMLO makes it easy to stay in compliance by offering no-hassle, self-paced and instructor-led CE courses that meet both national and state-specific requirements in a single package.
Key Takeaways
There are a number of steps you have to go through to become a mortgage loan originator. Once you’ve obtained your MLO license, you will want to ensure you’re always in good standing when it comes time for renewal.
Federal and state laws require mortgage loan originators to complete MLO continuing education which involves a minimum of 8 hours of specific industry-related training. Some states may require additional CE training hours depending on where you are licensed to do business.
Failure to complete this training by the end of the year could result in your license going inactive or worse, having to go through the MLO licensing application process from scratch.
Using an approved NMLS CE provider like JPMLO to complete your MLO continuing education training will help ensure your license is always in compliance and allow you to focus on other mortgage loan originator tasks and duties.
Sources
1 Education FAQ – NMLS Approved Education for MLO Licensure – Customer Support. (n.d.). Retrieved September 30, 2022, from https://nmlsportal.csbs.org/csm?id=kb_article_view&sysparm_article=KB0016840&sys_kb_id=f2cfada51b89f4108c04dbdbe54bcbe5