Is taking the 20 Hour Pre-licensing (PE) course with state specific requirements as part of the 20 hour course really saving you time?
We have heard from several students that have taken state specific classes as part of their 20 hour PE requirement. They claimed they were not properly prepared for the National Test in order to get their Mortgage Loan Originator License.
If you think about it, this makes logical sense as to why they feel that way. There are currently 29 states that have state specific PE requirements but only require a total of 20 hours of PE. So a state which requires 4 hours of state PE only requires an additional 16 hours of class time to complete the 20 hour PE requirement. That means that there are 4 hours of SAFE material that are NOT being covered as that student prepares for their National Test. As an education provider, and knowing the test content outline, every bit of those 20 hours is necessary to adequately provide information that the student may be tested on.
So what happens if the student does not pass the first time? They get two more chances to take the test within 3 months. If they fail 3 times during this time, they need to wait 6 months before they can take the test again. 6 months!!! And they still have not gained the 4 hours of material that may not have been covered in order to answer test questions correctly.
Don’t misunderstand my point. It is important for LOs to understand the laws as they pertain to their state. But in order to be licensed in that state in the first place, each MLO is required to pass the national test with the Uniform State Content (USC). USC questions are covered in a 20 hour course.
It makes more sense for states to require state specific PE outside of the 20 hour course so they can be assured their loan originators are gaining the necessary education and knowledge for originating in their state. Many Regulators would probably agree, but these are issues that take time and are difficult to change with state legislatures.
The decision to take a 20 hour course with state specific PE may come down to an economical issue. Why spend money on a 20 hour course PLUS a state PE class when you can get it all for the price of a 20 hour class? Good point, but think about the money lost when the MLO can’t originate for 6 months while waiting to retake the test! Is that really worth the $50-$100 savings? Close one loan in 6 months and you have basically erased that cost!
How about the best of both worlds? Diehl offers an incentive to take our 20 hour class so that the student gets ALL the information they need to prepare for the national test. We are able to offer bundle pricing that would allow the student to get the state specific PE with our 20 hour course! Yes, the student will be required to complete all 20 hours of instruction as well as the state PE but at least they have the knowledge base and information necessary to have the best chance at passing their national test the first time. Diehl’s 20 hour course is regarded as one of the best in the industry. We hear from our students over and over again that by taking our class, practicing with our national test prep tool, and attending our free Q & A webinar with the instructor prior to taking their test, they were prepared passing their test on the first try.