12 2 STA T . 2 8 1 5PUBLIC LA W 11 0– 28 9—J UL Y3 0 , 2008 (3)Theap p lic a nt ha sd e mo nst r ated f inancial responsi b ilit y, character, and g eneral fitness s u ch as to command the con - fidence of the community and to w arrant a determination that the loan originator will operate honestly, fairly, and efficiently within the purposes of this title . ( 4 ) The applicant has completed the pre-licensing education re q uirement described in subsection (c). ( 5 ) The applicant has passed a written test that meets the test requirement described in subsection (d). ( 6 ) The applicant has met either a net worth or surety bond requirement, or paid into a S tate fund, as required by the State pursuant to section 1 5 08 (d)(6). (c) PRE - LIC E NS IN GEDU C AT I O NO F LOAN O RIGINATORS. — (1) M INI M UM EDUCATIONA L RE Q UIREMENTS.— I n order to meet the pre-licensing education requirement referred to in subsection (b)(4), a person shall complete at least 2 0 hours of education appro v ed in accordance with paragraph (2), which shall include at least— ( A )3hoursof F ederal law and regulations
( B ) 3 hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues; and ( C ) 2 hours of training related to lending standards for the nontraditional mortgage product mar k etplace. (2) A P PRO V ED EDUCATIONAL COURSES.—For purposes of paragraph (1), pre-licensing education courses shall be reviewed, and approved by the N ationwide Mortgage Licensing System and R egistry. (3) LIMITATION AND STANDARDS.— (A) LIMITATION.—To maintain the independence of the approval process, the Nationwide Mortgage Licensing System and Registry shall not directly or indirectly offer pre-licensure educational courses for loan originators. (B) STANDARDS.—In approving courses under this sec- tion, the Nationwide Mortgage Licensing System and Reg- istry shall apply reasonable standards in the review and approval of courses. (d) TESTING OF LOAN ORIGINATORS.— (1) IN GENERAL.—In order to meet the written test require- ment referred to in subsection (b)(5), an individual shall pass, in accordance with the standards established under this sub- section, a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and administered by an approved test provider. (2) Q UALIFIED TEST.—A written test shall not be treated as a qualified written test for purposes of paragraph (1) unless the test adequately measures the applicant ’ s knowledge and comprehension in appropriate sub j ect areas, including— (A) ethics; (B) Federal law and regulation pertaining to mortgage origination; (C) State law and regulation pertaining to mortgage origination; ( D ) Federal and State law and regulation, including instruction on fraud, consumer protection, the nontradi- tional mortgage marketplace, and fair lending issues. (3) MINIMUM COMPETENCE.—
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