An Alabama MLO subject to the annual CE requirement completes three approved hours of federal law, two of ethics and two of nontraditional mortgage lending, with no other credit. Has the MLO met the minimum total in section 5-26-10(1)?
Correct Answer
C) No; seven hours fall one hour short of the eight-hour minimum
C. The stated subject hours total seven, but the minimum total is eight. Subject allocations are minimum components, not a substitute for the total-hours requirement. The MLO therefore needs additional qualifying education credit to reach the statutory minimum. Scope and exceptions: This tests the statutory minimum for someone subject to annual CE, not an exemption, course-repetition rule or complete renewal approval. Source: 5-26-10(1)-(2), pages 11-12 — https://banking.alabama.gov/wp-content/uploads/2023/08/AL_Secure_Fair_Enf_Mortgage_Lic_Act.pdf
Why This Is the Correct Answer
C. The stated subject hours total seven, but the minimum total is eight. Subject allocations are minimum components, not a substitute for the total-hours requirement. The MLO therefore needs additional qualifying education credit to reach the statutory minimum. Scope and exceptions: This tests the statutory minimum for someone subject to annual CE, not an exemption, course-repetition rule or complete renewal approval.
Why the Other Options Are Wrong
Option A: Yes; the three specified subject minimums total the full requirement
Mistakes seven subject hours for eight total hours.
Option B: Yes; paying the renewal fee supplies the remaining education credit
Fees are not education credit.
Option D: No; the statute requires twenty hours of CE every year
Confuses the annual CE minimum with a different education requirement.
Exam Tip
Check both subject coverage and total qualifying hours.
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