Under Tex. Fin. Code §§157.015(a)(3) and 180.060, residential mortgage loan originators (MLOs) are required to complete a minimum number of continuing education hours each year (8 hours) to maintain their originator license. This education ensures that MLOs stay current with industry practices, regulations, and ethical standards. It is imperative that these educational requirements are met in accordance with the SAFE Act to uphold the integrity of our profession.
Improperly completing continuing education (CE), including but not limited to engaging in inappropriate practices or allowing others to complete your CE on your behalf, constitutes a violation of the SAFE Act. These actions undermine the trust placed in our industry by consumers and regulators alike and can have long-lasting repercussions on your professional standing. Such violations can result in action by the Department of Savings and Mortgage Lending (SML) or other state regulators against your license, including revocation and suspension of your MLO license.
The Conference of State Bank Supervisors (CSBS) has implemented advanced technologies to ensure that CE requirements are fulfilled by the appropriate individuals. These systems are designed to verify MLOs’ identities and confirm that they are personally completing their required education. Non-compliant activities are identified and addressed with enforcement measures.
The recent multi-state enforcement action involving multiple MLOs and Real Estate Educational Services (REES) serves as a reminder of the seriousness with which CE compliance is treated. In this case, fraudulent activities related to CE were met with legal and regulatory consequences. The severity of the penalties imposed underscores the collective commitment to ensuring that all MLOs adhere to the prescribed educational standards and conduct themselves with the highest level of professionalism.
As MLOs, you are responsible for completing your CE requirements personally and in accordance with the NMLS Rules of Conduct, Tex. Fin. Code §§157.015(a)(3) and 180.060 and 7 Texas Administrative Code §81.106. We urge you to take all necessary steps to ensure your CE activities are conducted ethically and in full compliance with the applicable laws and regulations.
If you have any questions or require assistance with your continuing education, please contact the SML Licensing section by email at or call (512) 475-1350.
Thank you for your attention to this important matter and for your ongoing dedication to maintaining the highest standards of professionalism in the mortgage industry.
