What is the minimum number of hours which must be devoted to federal law in the NMLS required pre-licensing education?

The correct answer, indicating that three hours must be devoted to federal law in the NMLS required pre-licensing education, aligns with the requirements set forth for mortgage loan originators. The National Mortgage Licensing System (NMLS) mandates that applicants complete a minimum of 20 hours of pre-licensing education, which includes at least three hours focusing specifically on federal law and regulations. This emphasis ensures that future loan originators grasp the essential legal frameworks that govern mortgage practices on a federal level, such as the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).

Understanding federal law is crucial as it forms the foundation of compliant lending practices. This knowledge helps prevent legal infractions that can arise from ignorance of regulations that protect consumers and dictate lender practices. The requirement for three hours is set to reinforce this knowledge, ensuring that loan originators are well-equipped to operate within the confines of the law.