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What do I need for a South Dakota mortgage loan originator license?

In South Dakota, an individual meets the pre-licensing education requirement for a mortgage loan originator license by completing at least twenty hours of education approved under federal standards. The individual must also pass a qualified written test under federal standards.

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The rule, fact by fact

Course hours
At least twenty hours of education approved under federal standardsThe rule ties the hours to the federal approval standards in force on a fixed date.
Verified. sdlegislature.gov (opens state website) · checked Nov 13, 2026
Cost
$110 for the SAFE MLO Test, as NMLS lists it. This is not the course priceWe haven't confirmed a course price from a source.
NMLS Resource Center · SAFE MLO Test overview (opens website) · checked Nov 13, 2026
Who needs it
No one may act as a mortgage loan originator for South Dakota property without a licenseThe ban also covers using the title of a mortgage loan originator.
Verified. sdlegislature.gov (opens state website) · checked Nov 13, 2026

How to get it done

  1. Step 1. Check whether you need the license. No person may act as a mortgage loan originator in this state, or use the title, with respect to any property located in South Dakota without first obtaining and maintaining a license.

  2. Step 2. Pick a course NMLS has approved. The state rule ties the education to federal approval standards, and NMLS describes the requirement as 20 hours of NMLS-approved education.

  3. Step 3. Take at least twenty hours of that education.

  4. Step 4. Pass a qualified written test in accordance with the federal standards the rule names.

Before you pay

Before you pay, check that NMLS has approved the course.

Questions

What must the twenty hours include?

NMLS lists the national split as 3 hours of federal law, 3 of ethics, 2 of non-traditional mortgage lending, and 12 of electives.

Is anyone exempt from the license?

One exemption covers a person who originates, sells, or services five or fewer nonresidential mortgage loans in a twelve-month period, as long as the total outstanding does not exceed four million dollars. The limit counts every entity in which the person holds an equity interest. An exempt person reports to the division each year in which it handles such loans.

Can a past felony block the license?

It can. The director may not issue the license unless the applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in the seven years before applying, or at any time if it involved fraud, dishonesty, breach of trust, or money laundering. A pardoned conviction does not count as a conviction for this rule.

Where is the license held?

Each person must be licensed or registered and maintain a unique identifier through the nationwide mortgage licensing system and registry.

How long is the test?

NMLS lists 120 questions, with 115 scored, and 190 minutes to finish. The five unscored pre-test questions have no effect on your pass or fail result.

What to do next

Start with the South Dakota rule on pre-licensing education. Then pick a course that meets it.

sdlegislature.gov

Sources we read