How many hours of education are required for Mortgage Loan Originators (MLOs) before they can obtain a license under the SAFE Act?

Under the SAFE Act, Mortgage Loan Originators (MLOs) are required to complete 20 hours of pre-licensure education in order to obtain their license. This education is crucial as it encompasses federal and state laws, principles of residential mortgage lending, and ethical practices, which equip MLOs with the necessary knowledge to operate within the regulatory framework effectively.

The 20-hour requirement is designed to ensure that MLOs have a comprehensive understanding of the industry, thereby promoting professionalism and consumer protection. This educational foundation is essential for understanding the complexities of mortgage products, the lending process, and applicable regulations that govern their practice.

Other answer choices reflect lesser hour requirements that do not align with the regulatory standards established under the SAFE Act. Therefore, the specified requirement of 20 hours is confirmed as the correct answer, as it is a key component in preparing MLOs to serve borrowers competently and responsibly.