How many hours of CA law are required for Continuing Education each year Nmls?

Questions, like these, flood my inbox at a certain time of the year. The onslaught of questions usually starts around October/November and continues until December.

That’s because between November 1st and December 31st of each year, MLOs (mortgage loan originators) must renew their licenses and one of the conditions for renewal is to take 8 hours of Continuing Education classes.

Sadly, a disturbingly large number of mortgage loan originators don’t know about this until the deadline is looming large and panic starts to set in.

So, this post is designed to eliminate that panic and instead, instill the confidence that comes from knowing everything you need to know about the 8-Hour CE class.

Before I dive deep into everything you need to know about NMLS Continuing Education classes, if you (or someone you know) needs to first get their MLO License, check out our series of posts to help you ace the NMLS exam:

► Why Becoming an MLO is the Best Career Decision

► 5 Unignorable Hacks to Ace the NMLS Exam

► How to Choose the Best Crash Course for Your NMLS Training Needs

Alright… let’s lay out everything you need to know to ensure you take the best continuing education class to renew your MLO license.

The A-Z Guide to NMLS Continuing Education Classes for Mortgage Loan Originators

This guide is broken down into 4 logical, building block sections. We start with the foundation and then keep building on it till you have everything you need to make an informed choice well ahead of the deadline.

Section 1: What is a NMLS Continuing Education Class

A continuing education class is a mandatory requirement for all MLOs who completed their pre-licensing class in previous years.

According to the NMLS, “As a condition for license renewal, an MLO is required to complete at least eight (8) hours of CE in the same year in which he/she is placed in an approved license status by a state agency, with the following exception: – An MLO who has completed his/her pre-licensure education (PE) course requirements in the same year in which the license was approved, is not required to complete CE.“

You can take your CE or continuing education class either online or in-person.

Also, according to the NMLS, the CE class course content “…must include 3 hours of Federal law, 2 hours of ethics (which shall include fraud, consumer protection, and fair lending issues), and 2 hours of non-traditional mortgage lending, plus one additional hour of undefined education (referred to as an elective). The number of hours is 3/2/2/1 = 8.”

However, you cannot take the SAME CE course, two years in a row.

In addition, you shouldn’t retake your pre-licensing (PE) class unless you’ve been directed to by a State Regulator. So, if you’ve been advised to retake your PE class as a substitute for CE, that’s wrong. 

Finally, here are the deadlines straight from the horse’s NMLS’s mouth:

SMART Deadline: Friday, December 9, 2022

At-Risk-to-Miss Renewal Deadline: Friday, December 16, 2022

Guaranteed to Miss Renewal Deadline: Friday, December 30, 2022

Section 2: Who Needs to Take an 8-Hour CE Class

Now that you know what a CE class is all about, let’s look at who needs to take this class and who can afford to skip it.

The BEST and most reliable way to know this is to log in to NMLS to view your requirements. Your Course Completion Record will indicate whether or not you need to earn CE credits for this year.

Access the NMLS quick-start guide to navigate this easily and quickly.

Section 3: How to Choose the Best CE Class for Your License Renewal

Well, now you know what the Continuing education class is all about and who needs to take it, it’s time for you to decide how to choose the best 8-Hour CE class out there. 

MLO license endorsements are issued annually and expire December 31st of each year.  The NMLS renewal period begins November 1st and ends December 31st of each year.  MLO license endorsements issued prior to November 1st are required to be renewed through NMLS in order to be valid the following year. If a renewal request is not submitted through NMLS, the MLO license endorsement will expire on December 31st.  MLO license endorsements issued on or after November 1st will not be required to be renewed and will expire at the end of the following year.

Review Your License Records Prior to Requesting a MLO License Endorsement Renewal
Review your Department of Real Estate (DRE) real estate license information to make sure that the underlying DRE license is in a “Licensed” or “Licensed NBA” status.  If a real estate license is in an expired, revoked, suspended, or surrendered status the MLO renewal request will not be approved.

Log into your NMLS record(s) to ensure you know your User Name(s) and Password(s) and that your MLO license endorsement is in a renewable status (Approved, Approved-Inactive, or Approved-Conditional). Check for any license items on your MLO record(s). Any unresolved license items will delay and may prevent the approval of your renewal request.

Individual (MU4) License Endorsement Renewal Requirements - Broker and Salesperson
Complete eight (8) hours of NMLS approved continuing education (CE).  You may submit a renewal request and renewal fee electronically through NMLS when the CE is viewable on your NMLS record.  Since it may take as long as seven (7) days for a CE course provider to report a course completion to NMLS, MLOs are strongly encouraged not to wait until the final days of the renewal period to try to complete CE or they may be prevented from submitting an on-time renewal through NMLS.

Company (MU1) License Endorsement Renewal Requirements – Corporation
Submit a company renewal request and renewal fee electronically through NMLS.  The DRE licensed designated broker/officer must request and attest to the company renewal.  The designated broker/officer must also complete 8 hours of NMLS approved continuing education and submit an Individual MLO renewal request through NMLS. The Individual MLO renewal request should be submitted prior to the filing of the corporation Company renewal request.

Company (MU1) License Endorsement Renewal Requirements – Sole Proprietor Broker
Submit a company renewal request and renewal fee electronically through NMLS.  The broker must request and attest to the company renewal.  The broker must complete 8 hours of NMLS approved continuing education and submit an Individual MLO renewal request electronically through NMLS.  The Individual MLO renewal request should be submitted prior to the filing of the Company renewal request.

Branch (MU3) License Endorsement Renewal Requirements - Corporation and Sole Proprietor
Branch renewals should be submitted after the Company (MU1) license endorsement renewal has been submitted.

Mortgage Call Reports – Required for all Company MLO License Endorsements
The submission of Mortgage Call Reports (MCRs) is a SAFE Act requirement for all Company filings and is also required pursuant to California Business & Professions Code section 10166.08.  Failure to submit required MCRs to NMLS will delay and may prevent the approval of the renewal request.  It may also result in the denial of the renewal for the company MLO license endorsement.  Renewal fees are nonrefundable per Business and Professions Code section 10207.

Failure to Renew a MLO License Endorsement on or before December 31st
Individuals and companies who fail to request the MLO license endorsement renewal between November 1st and December 31st will result in the MLO license endorsement expiring as of January 1st.  The individual/corporation will be required to cease performing all activities that require a MLO license endorsement. 

NMLS does allow for a renewal to be requested during a "Reinstatement Period" which begins January 1st and continues through the end of February.  Late fees are not assessed for filings submitted during the NMLS reinstatement period.  Failure to request a renewal by the end of February will result in a MLO license endorsement status being changed to "Terminated-Expired" and will no longer be eligible for renewal.  To obtain a MLO license endorsement, a new application and appropriate fees must be filed again.  An applicant for an Individual MLO license endorsement must also authorize a new credit report, submit new fingerprints for a criminal background check, and complete the appropriate NMLS continuing education.

Additional information regarding the MLO renewal process can be found on the NMLS Web site.

Mortgage Loan Activity Notification Requirements

All licensees must report to the Department of Real Estate if they make, arrange, or service loans secured by residential property, 1 to 4 units, under the authority of a Department of Real Estate license. The report must be made within 30 days of commencing residential mortgage loan activity. This is an online form and must be completed on the Department of Real Estate Web Site using Form RE 866 - Mortgage Loan Activity Notification.

Penalty fees can apply for failure to submit this required notification. Penalties are fifty dollars ($50) per day for the first 30 days the report is not filed and one hundred dollars ($100) per day for every day thereafter not to exceed a maximum of $10,000.

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