United States
Hong KongThe 20-hour pre-licensure course
Twenty hours of NMLS-approved education required for licensure: 3 hours federal law, 3 hours ethics, 2 hours non-traditional mortgage lending and 12 hours of electives. It is a legal requirement, not an exam preparation course.
Every state-licensed mortgage loan originator must complete 20 hours of NMLS-approved pre-licensure education. The requirement is federal, set at 12 CFR 1008.105(b), and the hours are not freely allocated.
How the hours divide
| Subject | Hours |
|---|---|
| Federal law and regulations | 3 |
| Ethics, including fraud, consumer protection and fair lending | 3 |
| Non-traditional mortgage lending | 2 |
| Electives | 12 |
The first eight hours are fixed by regulation. The remaining twelve are the provider's to design, which is where courses differ from one another.
Some states add their own hours on top. Check yours.
Who can provide it
Only an NMLS-approved course provider. Approval is specific, it is checkable in NMLS, and a course from anywhere else does not count no matter how good it is.
This site is not an NMLS-approved course provider and nothing here satisfies the 20-hour requirement. Buy the course from an approved provider. What we do is the exam, which is a different problem.
The gap between the course and the exam
This is the thing worth understanding, and it explains a good deal of the 53% first-time pass rate.
The 20-hour course exists to satisfy a legal minimum. It is built to a curriculum standard, delivered to a schedule, and its completion certificate is what NMLS wants. None of that makes it a preparation program for a 120-question exam.
Twenty hours is also not very long. Set against a syllabus covering federal law, state content, mortgage products, origination practice, underwriting arithmetic and ethics, it is an introduction.
So how much more do you need
In our experience of the outline, somewhere between 40 and 70 hours in total for most candidates with no mortgage background. That is ours, not a published figure.
The course is the first 20 of those. The rest is practice questions, calculation drills and at least two full timed mocks.
Common questions
Do I need the 20-hour course before the NMLS exam?
It is required for the license rather than for booking the test, and almost everyone completes it first. It does not schedule the exam.
What does the 20-hour course cover?
3 hours federal law, 3 hours ethics, 2 hours non-traditional mortgage lending and 12 hours of electives, under 12 CFR 1008.105(b).
Does the 20-hour course prepare you for the exam?
Not on its own. It satisfies a legal minimum. Most candidates need considerably more practice on top, particularly on calculations.
Who can provide the 20-hour course?
Only an NMLS-approved course provider. Courses from anywhere else do not count towards the requirement.
Do I retake the course if I fail the exam?
No. The education requirement is satisfied once.