NMLS Pre-Licensing Education: The 20 Hours Explained
Before a state license can be issued, the SAFE Act requires at least 20 hours of NMLS-approved pre-licensing education (12 U.S.C. 5104(c); 12 CFR 1008.105(d), as at 11 Oct 2026).
| Required content | Minimum hours |
|---|---|
| Federal law and regulations | 3 |
| Ethics (fraud, consumer protection, fair lending) | 3 |
| Lending standards for the nontraditional mortgage product marketplace | 2 |
| Electives | 12 |
| Total | 20 |
What counts
Only courses reviewed and approved by NMLS count. They can be classroom, online or another approved format. Many states add state-specific hours on top of the 20.
How practice tests fit in
After PE
Most candidates book the test within a few weeks of finishing PE, while the material is fresh. Use the time to drill applied questions and take full practice exams. See how to pass.
Frequently asked questions
How many hours of PE are required?
At least 20 hours of NMLS-approved education: 3 federal law, 3 ethics, 2 nontraditional lending and 12 electives.
Do practice tests count as PE?
No. Only NMLS-approved courses count. Practice tests help you prepare for the exam.
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