Loan Officer Practice Exam

Which of the following will NOT count toward the continuing education requirement?

1. NMLS-approved 3 hour classroom course on federal law completed in the calendar year.

2. State-approved 1 hour online course on state-specific license law completed in the calendar year.

3. NMLS-approved 2 hour online course on nontraditional mortgage products completed in the calendar year.

4. NMLS-approved 2 hour classroom course on ethics completed in the calendar year.

The correct answer is: State-approved 1 hour online course on state-specific license law completed in the calendar year.

The continuing education requirements for loan officers often specify that courses must be approved by the NMLS (Nationwide Multistate Licensing System) to count toward the mandated hours. While state-specific courses can be beneficial and may contribute to a loan officer's overall knowledge, they typically do not meet the federal or NMLS standards for continuing education credits. In this context, the state-approved online course on state-specific license law does not align with NMLS requirements, meaning it will not be recognized toward the continuing education hours necessary for a loan officer. This highlights the importance of ensuring that courses taken for continuing education are not only approved but specifically recognized by the governing body relevant to the loan officer's license. On the other hand, the other options listed are all NMLS-approved courses. Because they have received the appropriate approval, they fulfill the educational requirements as mandated by the NMLS, thus contributing toward the necessary continuing education hours for loan officers. This reinforces the need for loan officers to prioritize courses that meet these official standards to maintain their licenses.