A candidate is booking pre-licensing education and finds a 20-hour course advertised as SAFE-compliant. She wants to check the breakdown before paying. What minimum federal-law, ethics, and nontraditional-mortgage hours must the SAFE prelicensing course include?
Correct Answer
B) 3 hours federal law, 3 hours ethics, 2 hours nontraditional products
B. The federal subject minimums are three, three and two hours. These allocations sit within at least twenty approved PE hours, not an eight-hour total PE course. Scope and exceptions: Higher allocations are not automatically noncompliant. Approval, total hours and state additions still matter. Source: Section 1008.105(d)(1)–(3) — https://www.consumerfinance.gov/rules-policy/regulations/1008/105/
Why This Is the Correct Answer
B. The federal subject minimums are three, three and two hours. These allocations sit within at least twenty approved PE hours, not an eight-hour total PE course. Scope and exceptions: Higher allocations are not automatically noncompliant. Approval, total hours and state additions still matter.
Why the Other Options Are Wrong
Option A: 5 hours federal law, 3 hours ethics, 2 hours nontraditional products
Can exceed the floor but does not state the exact minimums.
Option C: 3 hours federal law, 2 hours ethics, 3 hours nontraditional products
Ethics is below the PE minimum.
Option D: 4 hours federal law, 4 hours ethics, 4 hours nontraditional products
Exceeds the floors rather than stating them.
Exam Tip
Distinguish exact minimums from a permissible course allocation.
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