By
Knowledge Coop
•
September 16, 2026
If you want to become a state-licensed mortgage loan originator (MLO), NMLS pre-licensure education (PE) is one of the first steps in the licensing process.
Under the SAFE Act, new state-licensed MLOs must complete at least 20 hours of NMLS-approved pre-licensure education. The required coursework covers federal law, ethics, non-traditional mortgage lending, and other mortgage origination topics. Some states also require additional state-specific education.
During your PE course, expect structured coursework, participation and identity-verification requirements, and a lot of new mortgage terminology. You'll learn the laws, regulations, lending practices, and responsibilities that form the foundation of working as an MLO.
And PE is only one part of becoming licensed. After completing your required education, you'll still need to meet other licensing requirements, including passing the SAFE MLO Test.
Here's what to expect before, during, and after your NMLS pre-licensure education.
How many hours of PE do you need? At least 20 hours for state-licensed MLOs.
Do you need state-specific PE? It depends on the state where you're seeking a license.
Can you take NMLS PE online? Yes, NMLS-approved PE is available in online formats.
Is PE the same as test prep? No. PE and SAFE MLO Test prep serve different purposes.
Do you take the SAFE MLO Test during PE? No. The SAFE MLO Test is a separate licensing requirement.
Do you need mortgage experience? No. PE is designed to provide foundational mortgage education.
What happens after PE? You'll continue with the SAFE MLO Test and other licensing requirements.
NMLS pre-licensure education is required training for individuals seeking a state mortgage loan originator license. It provides the foundational mortgage education new MLOs need before completing other steps in the licensing process.
NMLS stands for the Nationwide Multistate Licensing System & Registry. State regulatory agencies use NMLS to manage licensing and registration for mortgage professionals and other financial services industries.
For new MLOs, pre-licensure education is commonly referred to as PE.
The SAFE Act requires state-licensed mortgage loan originators to complete at least 20 hours of NMLS-approved pre-licensure education.
According to NMLS, the minimum 20 hours must include:
Some states require additional state-specific education beyond the 20-hour minimum.
That means the total amount of PE you need depends on the state or states where you plan to become licensed. Check the current requirements for each jurisdiction through NMLS before enrolling in your courses.
Source: NMLS State Resource Center, Education Requirements
NMLS PE teaches future mortgage loan originators about the laws, regulations, ethics, consumer protections, and lending practices involved in mortgage origination.
If you're completely new to mortgage, expect to encounter a lot of unfamiliar terminology. You'll learn about topics such as federal mortgage regulations, ethical lending practices, fair lending, loan products, consumer protections, and the responsibilities that come with working as an MLO.
You aren't expected to know all of this before starting. PE is designed to give you a foundation you can continue building throughout the licensing process and your mortgage career.
Instead of focusing only on memorizing rules and acronyms, try to understand how the concepts apply to real mortgage transactions. That context can make the material easier to understand and remember.
An online NMLS PE course is structured education that allows you to complete approved mortgage training remotely while meeting NMLS requirements for course participation and completion.
Don't expect to press play on a few videos in the background and check off your 20 hours. NMLS-approved education has requirements that course providers and students must follow. Depending on the approved course format and provider, your experience may include instructional content, activities, knowledge checks, assessments, participation requirements, and identity verification.
You'll also be covering a significant amount of new information. Plan dedicated time when you can focus rather than trying to squeeze your course between other tasks.
During PE, you may encounter:
The goal isn't just to finish your required education hours. It's to begin understanding the industry you're preparing to enter.
Yes. NMLS-approved online education includes requirements designed to verify student identity and participation.
PE credit must be earned by the individual registered for the course. Follow the identity-verification instructions provided by your education provider and make sure the personal information you use for your course matches your NMLS records when required.
Don't wait until the last minute to complete your education! Giving yourself extra time can help you address verification or technical issues without putting your licensing timeline at risk.
You may need state-specific PE in addition to the 20-hour federal requirement, depending on where you plan to become licensed.
State-specific PE focuses on mortgage laws, regulations, and licensing requirements that apply within a particular jurisdiction.
If you plan to become licensed in multiple states, you may need additional education for each state that has its own PE requirement.
Because requirements vary by jurisdiction and can change, check the current NMLS education requirements for every state where you're seeking a license before choosing your courses.
No. NMLS pre-licensure education and SAFE MLO Test preparation are different parts of becoming a mortgage loan originator.
PE is required education. It introduces you to many of the mortgage laws, regulations, ethical responsibilities, and lending concepts you'll need to understand as an MLO.
The SAFE MLO Test is a separate licensing requirement designed to evaluate your knowledge of mortgage laws and practices.
Your PE course can help build your foundation, but completing PE does not automatically mean you're prepared to pass the SAFE MLO Test.
Plan to study specifically for the exam after or alongside your required education.
NMLS PE can be challenging when you're completely new to mortgage, but you don't need previous mortgage experience to get started.
One of the biggest challenges is simply the volume of unfamiliar terminology, laws, and regulations you'll encounter. Instead of trying to memorize every acronym or rule immediately, focus on understanding how the concepts connect.
When you learn about a regulation, ask why it exists. When you encounter an MLO responsibility, think about how it affects the borrower. When you learn a new term, connect it to the larger mortgage process.
Understanding the ‘why’ behind the material can make the details easier to remember when you begin preparing for the SAFE MLO Test.
You don't need to study mortgage lending before starting PE, but setting aside enough time and creating a plan can make the course easier to manage.
Avoid treating your 20-hour requirement like something you need to race through. Give yourself time to absorb unfamiliar concepts and take notes as you go.
Pay particular attention to:
Keep your notes when you're finished. They can give you a useful starting point when you begin studying for the SAFE MLO Test.
After completing your required NMLS pre-licensure education, you'll continue through the remaining licensing requirements for becoming a mortgage loan originator.
Depending on your jurisdiction and circumstances, the process may include:
PE completion does not automatically grant you an MLO license.
Licensing requirements vary by jurisdiction, so check the current requirements for the state where you're applying.
Previously completed NMLS pre-licensure education may need to be retaken in certain circumstances.
According to the NMLS State Resource Center, under the SAFE Act's successive years rule, an MLO may be required to retake the 20 hours of PE if they fail to acquire a valid state license or federal registration within three years of completing PE, or if they have not maintained a valid license or registration for a three-year period.
State agencies may also have additional requirements that affect whether previous education can be applied toward a new license.
If you completed PE several years ago or have been out of the mortgage industry for an extended period, review your NMLS education record and the current requirements for your jurisdiction before enrolling.
PE is education completed as part of becoming licensed, while CE is continuing education completed by licensed MLOs to meet annual licensing requirements.
Pre-licensure education helps you enter the mortgage industry. Continuing education helps you maintain your license and stay current on required laws, regulations, ethics, and mortgage topics.
If you're working toward your first state MLO license, you'll encounter PE first. Once you're licensed, NMLS continuing education becomes part of maintaining eligible license status.
State-licensed mortgage loan originators must complete at least 20 hours of NMLS-approved pre-licensure education under the SAFE Act. Some states require additional state-specific PE, which can increase your total education hours.
Yes. NMLS-approved pre-licensure education is available in online formats. The course and provider must meet applicable NMLS requirements for approved education, participation, and course completion.
Not necessarily. Some states require state-specific PE in addition to the 20-hour requirement. Check the current NMLS requirements for every state where you plan to become licensed.
No. Pre-licensure education and the SAFE MLO Test are separate licensing requirements. PE provides foundational education, while the SAFE MLO Test is a separate examination.
No. NMLS pre-licensure education is designed to introduce future MLOs to important mortgage laws, regulations, ethics, consumer protections, and lending concepts. You don't need previous mortgage experience to begin.
No. Pre-licensure education is completed as part of becoming licensed. Continuing education is completed after licensing to meet annual education requirements.
After PE, your next steps may include studying for and passing the SAFE MLO Test, completing background and credit requirements, submitting your license application, and meeting any additional requirements established by your state regulator.
Your NMLS PE course isn't just 20 hours to get through. It's your introduction to the mortgage industry and the responsibilities that come with becoming a licensed mortgage loan originator.
Use the experience to learn the language of mortgage, understand the regulations that shape the industry, and start developing the knowledge you'll eventually use with borrowers.
Knowledge Coop has more than 20 years of experience creating mortgage education for industry professionals. As an NMLS-approved education provider, we offer pre-licensure education for future MLOs, including 20-Hour Federal PE and state-specific PE options.
Explore Knowledge Coop's NMLS Pre-Licensure Education and start working toward your MLO license.
