12 CFR §1008.105 — Minimum loan originator license requirements (SAFE Act)
Federal floor of state MLO licensing standards (Regulation H): eligibility criteria covering license-revocation history, felony convictions, character & fitness, pre-licensing education, NMLSR test, surety-bond/net-worth/state-fund coverage, and FBI fingerprint background check.
Verbatim regulatory text
Verbatim provisions from 12 CFR §1008.105 — Minimum loan originator license requirements (SAFE Act) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
12 CFR §1008.105(a) — No prior loan-originator license revocation
(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;
12 CFR §1008.105(b) — Felony bars (7-year window + lifetime fraud/dishonesty bar)
(1) Has never been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:
12 CFR §1008.105(c) — Financial responsibility, character, and general fitness
(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 .
12 CFR §1008.105(d) — Pre-licensing education (≥20 hours, including 3hr Federal / 3hr ethics / 2hr nontraditional)
(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:
12 CFR §1008.105(e) — Licensing test (75% NMLSR written test)
(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) .
12 CFR §1008.105(f) — Net worth, surety bond, or state-fund coverage
(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.
12 CFR §1008.105(g) — FBI fingerprint criminal-history background check
(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;
12 CFR §1008.105(b) — Felony bars (7-year window + lifetime fraud/dishonesty bar) — enumerated items (chapeau recall fix)
(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.
12 CFR §1008.105(d) — Pre-licensing education (≥20 hours, including 3hr Federal / 3hr ethics / 2hr nontraditional) — enumerated items (chapeau recall fix)
(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.