§ 5105. Standards for State license renewal

• (a) The minimum standards for license renewal for State-licensed loan originators shall include the following:
  • (1) The loan originator continues to meet the minimum standards for license issuance.
  • (2) The loan originator has satisfied the annual continuing education requirements described in subsection (b).
• (b)
  • (1) In order to meet the annual continuing education requirements referred to in subsection (a)(2), a State-licensed loan originator shall complete at least 8 hours of education approved in accordance with paragraph (2), which shall include at least—
    • (A) 3 hours of Federal law and regulations;
    • (B) 2 hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues; and
    • (C) 2 hours of training related to lending standards for the nontraditional mortgage product marketplace.
  • (2) For purposes of paragraph (1), continuing education courses shall be reviewed, and approved by the Nationwide Mortgage Licensing System and Registry.
  • (3) A State-licensed loan originator—
    • (A) may only receive credit for a continuing education course in the year in which the course is taken; and
    • (B) may not take the same approved course in the same or successive years to meet the annual requirements for continuing education.
  • (4) A State-licensed loan originator who is approved as an instructor of an approved continuing education course may receive credit for the originator’s own annual continuing education requirement at the rate of 2 hours credit for every 1 hour taught.
  • (5)
    • (A) To maintain the independence of the approval process, the Nationwide Mortgage Licensing System and Registry shall not directly or indirectly offer any continuing education courses for loan originators.
    • (B) In approving courses under this section, the Nationwide Mortgage Licensing System and Registry shall apply reasonable standards in the review and approval of courses.