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What do I need for an Alabama mortgage loan originator license?

To get an Alabama mortgage loan originator license, you need at least 20 hours of education that NMLS approves. You also need a passing score on the NMLS test. The law says a passing score is at least 75 percent. The law says the classes can be online.

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The rule, fact by fact

Course hours
At least 20 hours of approved educationIt must include three hours of federal law, three of ethics and two of nontraditional lending.
Verified. banking.alabama.gov (opens state website) · checked Nov 13, 2026
Cost
$110 for the SAFE MLO Test, as NMLS lists it. This is not the course priceThat is the test fee NMLS lists. We haven't confirmed a course price from a source.
NMLS Resource Center · SAFE MLO Test overview (opens website) · checked Nov 13, 2026
Online accepted
Yes. The law allows a classroom, online, or other means NMLS approvesNMLS decides which other means count.
Same source and date as above
Passing score
A passing score is at least 75 percentThe law sets that cutoff for a qualified written test.
Same source and date as above

How to get it done

  1. Step 1. Check that you need the license. Alabama law says an individual who is not exempt may not engage in the business of a mortgage loan originator with respect to any dwelling in the state without first getting a license and maintaining it annually. Among those exempt are registered mortgage loan originators acting for the entity that employs them: a depository institution, a subsidiary it owns and controls that a federal banking agency regulates, or an institution regulated by the Farm Credit Administration. Someone who negotiates a loan for an immediate family member is exempt. So is someone who negotiates a loan on a dwelling that served as their residence.

  2. Step 2. Pick a course from the NMLS course provider list. The law says NMLS reviews and approves the course and its provider. Plan for 20 hours: 3 on federal law, 3 on ethics, 2 on non-traditional mortgage lending and 12 electives. NMLS says Alabama has no requirement for instruction on state-specific law.

  3. Step 3. Take the course online or in a classroom. The law says pre-licensing education may be offered in a classroom, online, or by any other means NMLS approves.

  4. Step 4. Pass the NMLS test. The law says a passing score is at least 75 percent correct answers. NMLS lists the fee for its National Test as $110.

Courses

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Before you pay

Before you pay, check that the course is on the NMLS course provider list and covers the 20 hours.

Questions

What does the Alabama license fee cost?

The Alabama law sets an initial license fee of $75. It is in addition to the fees required to apply through NMLS.

How many times can I retake the test?

You can retake the test three consecutive times, with each test at least 30 days after the one before. After failing three consecutive tests, you wait at least six months before taking it again.

Does education from another state count?

Yes, for the three required topics: federal law, ethics and non-traditional lending. The law accepts those NMLS-approved requirements for any state as credit toward Alabama pre-licensing education.

What if my license lapses?

A licensed originator who fails to keep a valid license for five years or longer retakes the test. The law does not count any time as a registered mortgage loan originator.

What to do next

Start with the Alabama law that sets the hours. Then pick a course from the NMLS list.

banking.alabama.gov

Sources we read