1. (1) satisfactorily complete requirements as prescribed pursuant to section 599-f of article 12-E; and

2. (2) submit to the originating entity and the NMLS when directed by the superintendent proof of completion of the required number of hours of education courses.

   (b) Required courses.

   A person seeking a license under article 12-E shall complete at least 20 hours of pre-license education courses, including courses satisfying the following minimum requirements:

3. (1) three hours of Federal law and regulations;
4. (2) three hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues;
5. (3) two hours of training related to lending standards for the nontraditional mortgage product marketplace; and

6. (4) three hours of training on applicable New York State law and regulations as may have been approved by the superintendent as pre-education courses.

   (c) Format of courses.

7. (1) Inexperienced MLOs. An MLO with less than four years of experience as an MLO must take only pre-licensing education courses given in the following formats:

   1. (i) a traditional live classroom setting;
   2. (ii) fully interactive video or audio conferences, where there is an opportunity for students to ask questions; or
   3. (iii) a format where the student cannot advance to the next course without demonstrating his or her comprehension of previous subjects.

8. (2) Experienced MLOs. In the case of an MLO with four or more years of experience as an MLO half of the required credit hours shall be in given in the following formats:

   1. (i) a traditional live classroom setting;
   2. (ii) fully interactive video or audio conferences, where there is an opportunity for students to ask questions; or

   3. (iii) a format where the student cannot advance to the next course without demonstrating his or her comprehension of previous subjects. The remaining credit hours may be satisfied in any of the preceding formats or any of the following formats:

      1. (a) online programs;
      2. (b) webcasts;
      3. (c) audio and video recordings;
      4. (d) video conferencing;
      5. (e) teleconferencing;
      6. (f) computer based learning software; and

      7. (g) live satellite broadcasts.

         (d) Proof that MLO has completed pre-licensing education requirements.

         No originating entity shall permit any MLO who is required to have completed pre-licensing education requirements pursuant to article 12-E of the Banking Law to engage in mortgage loan originating until it has received proof of completion of such requirements.

(a) Condition to licenses.

Each MLO shall, as a condition of initial licensing under article 12-E: