Under the federal SAFE minimum, what is the annual CE total and the minimum hours specifically required in federal law, ethics, and nontraditional mortgage lending, before allocating the remaining hour?
Correct Answer
B) 8 hours total: 3 federal law, 2 ethics, 2 nontraditional, plus 1 additional approved hour
B. Eight approved hours with subject minimums of three federal, two ethics and two nontraditional. The subject minimums sum to seven hours; one more approved hour is needed to reach eight. That additional hour may add subject instruction rather than necessarily being a separate elective category. Scope and exceptions: These are federal minimums for state-licensed originators. Check state additions and course approval. A 3/3/2 approved allocation can satisfy the federal subject requirements even without a separate elective. Source: Section 1008.107(a)(2) — https://www.consumerfinance.gov/rules-policy/regulations/1008/107/ Section 1008.105(d) — https://www.consumerfinance.gov/rules-policy/regulations/1008/105/
Why This Is the Correct Answer
B. Eight approved hours with subject minimums of three federal, two ethics and two nontraditional. The subject minimums sum to seven hours; one more approved hour is needed to reach eight. That additional hour may add subject instruction rather than necessarily being a separate elective category. Scope and exceptions: These are federal minimums for state-licensed originators. Check state additions and course approval. A 3/3/2 approved allocation can satisfy the federal subject requirements even without a separate elective.
Why the Other Options Are Wrong
Option A: 20 hours: 3 federal law, 3 ethics, 2 nontraditional, 12 elective
Twenty hours is the initial prelicensing total, not the annual minimum.
Option C: 12 hours: 4 federal law, 4 ethics, 4 nontraditional, 0 elective
Twelve hours is not the federal annual minimum.
Option D: 8 hours: 2 federal law, 3 ethics, 2 nontraditional, 1 elective
Two federal-law hours falls below the three-hour floor.
Exam Tip
Distinguish the eight-hour total from the seven hours of specified subject floors.
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