What type of education must a mortgage loan originator complete to obtain a license?

To obtain a mortgage loan originator (MLO) license, an individual is required to complete a minimum of 20 hours of pre-licensing education. This education typically covers essential topics such as federal and state mortgage laws, loan origination practices, and ethics in the lending process, providing a foundational understanding crucial for the responsibilities and regulations of the MLO role.

Completing this pre-licensing education is vital for ensuring that mortgage loan originators are well-equipped with the knowledge necessary to operate within the lending industry legally and competently. Additionally, it reflects the commitment to professionalism and preparedness that regulatory bodies expect from MLOs, ensuring that they can effectively assist consumers in navigating their mortgage options.

The other options are not correct because they either represent training or education not required or do not align with the specific licensing requirements set forth for MLOs. For example, on-the-job training, while valuable, does not fulfill the pre-licensing educational requirements. Similarly, a bachelor's degree, while beneficial, is not mandated; and continuing education, although necessary for license renewal, is not part of the initial licensing process.