12 U.S.C. § 5105 — Standards for State license renewal

(a) In general The minimum standards for license renewal for State^*-licensed loan originators must 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) Continuing education for State-licensed loan originators (1) In general In order to meet the annual continuing education requirements referred to in subsection (a)(2), a State-licensed loan originator must complete at least 8 hours of education approved under paragraph (2), which must include at least— (A) 3 hours of Federal law and regulations; (B) 2 hours of ethics, which must 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) Approved educational courses For purposes of paragraph (1), continuing education courses must be reviewed, and approved by the Nationwide Mortgage Licensing System and Registry. (3) Calculation of continuing education credits 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) cannot take the same approved course in the same or successive years to meet the annual requirements for continuing education. (4) Instructor credit 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) Limitation and standards (A) Limitation To maintain the independence of the approval process, the Nationwide Mortgage Licensing System and Registry must not directly or indirectly offer any continuing education courses for loan originators. (B) Standards In approving courses under this section, the Nationwide Mortgage Licensing System and Registry must apply reasonable standards in the review and approval of courses.