A candidate has completed 20 hours of approved pre-licensing education and asks what the federal minimum required inside those hours. What are the minimum required federal-law, ethics, and nontraditional-lending components within the 20-hour SAFE prelicensing total?
Correct Answer
C) 3 hours federal law, 3 hours ethics and 2 hours nontraditional lending
C. Three federal-law, three ethics and two nontraditional-lending hours. The question asks for exact subject floors within the approved twenty-hour minimum, not every possible compliant allocation. Scope and exceptions: Options with higher allocations are not inherently noncompliant. Total approved hours and state additions remain separate checks. Source: Section 1008.105(d) — https://www.consumerfinance.gov/rules-policy/regulations/1008/105/
Why This Is the Correct Answer
C. Three federal-law, three ethics and two nontraditional-lending hours. The question asks for exact subject floors within the approved twenty-hour minimum, not every possible compliant allocation. Scope and exceptions: Options with higher allocations are not inherently noncompliant. Total approved hours and state additions remain separate checks.
Why the Other Options Are Wrong
Option A: 8 hours federal law, 8 hours ethics and 4 hours nontraditional lending
This exceeds the specified floors rather than stating them.
Option B: 5 hours federal law, 5 hours ethics and 5 hours nontraditional lending
These higher allocations are not the exact minimums.
Option D: 2 hours federal law, 2 hours ethics and 2 hours nontraditional lending
Federal law and ethics are below the required minimums.
Exam Tip
Minimum hours are floors, not maximum permitted allocations.
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