On July 30^th, 2008, the President signed the Housing and Economic Recovery Act of 2008 (H.R. 3221) into law to stabilize the housing market and help alleviate the financial crisis.  Title V of the Act, the Secure and Fair Enforcement (S.A.F.E.) for Mortgage Licensing Act of 2008, is specific to the registration and education of mortgage loan originators across the country to aid with consumer protection and fraud reduction.

The S.A.F.E. Mortgage Licensing Act mandates that all loan originators be licensed through the Nationwide Mortgage Licensing System and Registry (NMLS) and establishes uniform minimum national standards for testing and both pre-licensing and continuing education.  

The minimum standard for the pre-licensing education requirement is 20 hours.  Courses must include at least

• Three hours of federal mortgage law and regulation
• Three hours of ethics (including fraud, consumer protection and fair lending issues)
• Two hours related to lending standards for the nontraditional mortgage product marketplace

The minimum standard for the continuing education requirement is 8 hours.  Courses must include at least:

• Three hours of federal law and regulation
• Two hours of ethics (including instruction on fraud, consumer protection and fair lending issues)
• Two hours of training related to lending standards for the nontraditional mortgage product marketplace

All loan originator applicants must also pass a written national and state exam by 75% or more.

Read more about the S.A.F.E. Mortgage Licensing Act here.