---
kind: "section"
citation: "12 C.F.R. § 1008.105"
title: "12"
number: "1008.105"
heading: "Minimum loan originator license requirements."
url: "https://uscodex.org/cfr/12/1008.105"
---

# §1008.105. Minimum loan originator license requirements.


For an individual to be eligible for a loan originator license required under § [1008.103(a)](/cfr/12/1008.103.md?p=a) and [(d)](/cfr/12/1008.103.md?p=d), a state must require and find, at a minimum, that an individual:

- (a) Has never had a loan originator license revoked in any governmental jurisdiction, except that a formally vacated revocation shall not be deemed a revocation;
- (b)
  - (1) Has never been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:
    - (i) During the 7-year period preceding the date of the application for licensing; or
    - (ii) At any time preceding such date of application, if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering.
  - (2) **For purposes of this paragraph (b)—**
    - (i) Expunged convictions and pardoned convictions do not, in themselves, affect the eligibility of the individual; and
    - (ii) Whether a particular crime is classified as a felony is determined by the law of the jurisdiction in which an individual is convicted.
- (c) Has demonstrated financial responsibility, character, and general fitness, such as to command the confidence of the community and to warrant a determination that the loan originator will operate honestly, fairly, and efficiently, under reasonable standards established by the individual state.
- (d) Completed at least 20 hours of pre-licensing education that has been reviewed and approved by the Nationwide Mortgage Licensing System and Registry. The pre-licensing education completed by the individual must include at least:
  - (1) 3 hours of Federal law and regulations;
  - (2) 3 hours of ethics, which must include instruction on fraud, consumer protection, and fair lending issues; and
  - (3) 2 hours of training on lending standards for the nontraditional mortgage product marketplace.
- (e)
  - (1) Achieved a test score of not less than 75 percent correct answers on a written test developed by the NMLSR in accordance with [12 U.S.C. 5105(d)](/usc/12/5105.md?p=d).
  - (2) To satisfy the requirement under [paragraph (e)(1)](#e-1) of this section, an individual may take a test three consecutive times, with each retest occurring at least 30 days after the preceding test. If an individual fails three consecutive tests, the individual must wait at least 6 months before taking the test again.
  - (3) If a formerly state-licensed loan originator fails to maintain a valid license for 5 years or longer, not taking into account any time during which such individual is a registered loan originator, the individual must retake the test and achieve a test score of not less than 75 percent correct answers.
- (f) Be covered by either a net worth or surety bond requirement, or pays into a state fund, as required by the state loan originator supervisory authority.
- (g) Has submitted to the NMLSR fingerprints for submission to the Federal Bureau of Investigation and to any government agency for a state and national criminal history background check; and
- (h) Has submitted to the NMLSR personal history and experience, which must include authorization for the NMLSR to obtain:
  - (1) Information related to any administrative, civil, or criminal findings by any governmental jurisdiction; and
  - (2) **An independent credit report.**

## Notes

### Authority

Authority: 12 U.S.C. 5101-5116; Pub. L. 111-203, 124 Stat. 1376.

### Source

Source: 76 FR 78487, Dec. 19, 2011, unless otherwise noted.