Question 20
Domain 2: Mortgage Loan Origination ActivitiesWhat happens if an MLO fails to complete their continuing education by December 31st?
Correct answer: C
Explanation
Continuing education must be completed by the annual deadline, and if it is not, the license does not remain active into the next year. As stated in the rule, failure to complete continuing education by December 31 means the MLO’s license "automatically lapses on January 1st."
Why each option is right or wrong
A. They receive a 30-day grace period
B. They must pay a late fee but can continue working
C. Their license automatically lapses on January 1st
Under the SAFE Act framework, an MLO must complete the required annual continuing education by December 31 to remain eligible for active licensure into the next calendar year. If that deadline is missed, the license does not carry over and instead automatically lapses on January 1, with no grace period stated in the rule.
D. They are placed on probationary status