2 originators sit in the same room. One works for a national bank and is registered with the NMLSR. The other works for an independent brokerage and is state-licensed. Which originator is subject to SAFE's national-test and 20-hour prelicensing-education requirements?
Correct Answer
D) Only the state-licensed one must pass the test and take 20 hours of PE
D. The state-licensed originator is subject to these SAFE licensing requirements. The state-licensing minimum includes approved prelicensing education and a qualifying test. The lawfully registered employee of a covered bank follows the federal registration path instead. Sharing a room does not change either status. Scope and exceptions: Twenty hours is the federal PE minimum, not a ceiling on state additions. Federal registration is not exemption from all training, supervision or other qualification requirements. Source: Section 1008.103(e)(5) — https://www.consumerfinance.gov/rules-policy/regulations/1008/103/ Section 1008.105(d)–(e) — https://www.consumerfinance.gov/rules-policy/regulations/1008/105/
Why This Is the Correct Answer
D. The state-licensed originator is subject to these SAFE licensing requirements. The state-licensing minimum includes approved prelicensing education and a qualifying test. The lawfully registered employee of a covered bank follows the federal registration path instead. Sharing a room does not change either status. Scope and exceptions: Twenty hours is the federal PE minimum, not a ceiling on state additions. Federal registration is not exemption from all training, supervision or other qualification requirements.
Why the Other Options Are Wrong
Option A: Both must pass the test and complete the same 20 hours of pre-licensing
This erases the distinction between the two pathways.
Option B: Neither has a testing requirement once the employer registers them
Employer registration does not replace the brokerage originator’s state requirements.
Option C: Only the registered one must pass, because federal oversight is stricter
This reverses the requirements.
Exam Tip
Identify the employer and registration/licensing pathway before applying education rules.
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