It happens. Life gets busy, and you miss your annual mortgage license continuing education deadline. Suddenly, you’re worrying about your license status. The good news is Late CE NMLS rules give you a second chance.
In this article, we’ll explain what Late CE is, the consequences of falling behind, and how to choose the right NMLS late CE courses to get back on track and keep your license active.
What Is “Late CE” in NMLS?
Late CE refers to special NMLS-approved continuing education courses designed for mortgage loan officers who did not complete their required CE on time. Every state-licensed MLO must do 8 hours of CE each year to renew their license. If you miss the deadline (typically December 31), you can’t renew normally. Instead, you enter a 60-day reinstatement period in which you must complete “Late CE” courses to make up last year’s credits. Late CE courses cover the same topics as regular CE, but they are labeled for the year missed. For example, if you skipped your 2024 CE, you needed to take a 2024 Late CE course in early 2025.
Completing Late CE is mandatory to reinstate an expired MLO license. During the reinstatement window (January 1 through February 28), you can finish the required CE and submit for license renewal. If you do, your license can be reactivated. Fail to get it done by the end of February, and your license will be terminated, meaning you’ll have to go through re-licensing steps to work as a loan officer again. So, Late CE is your safety net if you fall behind, but it’s time-sensitive.
Consequences of Missing the CE Deadline
Missing the annual CE deadline has real consequences, so it’s important to address the issue quickly. Here are a few things that happen if you’re late on CE.
License Inactivity
On January 1, if your CE isn’t done, your license status is typically marked as inactive or “failed to renew.” You cannot originate loans with an inactive license, which can put your income on hold.
Reinstatement Fees
Most states charge extra fees for renewing late. These vary by state. For example, some impose a flat reinstatement fee (e.g. $100–$300) and others add a daily late penalty (for instance, $25 per day up to a maximum). These fines can add up quickly, making procrastination costly.
Paperwork and Delays
During reinstatement, you may need to file additional forms or explain why you missed renewal. Even after completing Late CE and paying fees, you might wait several days or weeks for the state to process your renewal. That means lost business while you’re sidelined.
Potential Penalties
In extreme cases, if you ignore the CE requirement entirely, you could face disciplinary action. At the very least, you’ll have the hassle of reapplying for a new license if you miss the reinstatement window.
The bottom line is that letting your mortgage license continuing education lapse isn’t the end of the world, but it does come with headaches. Fortunately, Late CE provides a path to catch up.
How to Catch Up with Late CE (Step by Step)
Falling behind on CE is stressful, but you can fix it. Here’s how to catch up and keep your license.
1) Confirm What You Need
Start by logging into your NMLS account and checking your license status and CE requirements. How many hours are incomplete? Do you need any state-specific courses? Knowing the exact gap is the first step.
2) Find Approved Late CE Courses
Not all CE classes qualify as Late CE. You must enroll in NMLS late CE courses specifically designated for the year you missed. Find an NMLS-approved education provider that offers the Late CE for your state and the correct year. Providers often label these courses clearly, like “2024 Late CE 8-Hour Course.” Make sure any course includes any required state components for your licenses.
3) Complete the Coursework Promptly
Enroll and finish the Late CE course as soon as possible. These courses are often available online, so you can complete them quickly on your own schedule. Expect to cover the same core topics (federal law, ethics, non-traditional lending, etc.) along with any state-required content you need. Don’t drag your feet now. The sooner it’s done, the sooner you can regain your license.
4) Confirm Credits Are Reported
After finishing, confirm that your course provider reports your CE credits to NMLS. Most providers automatically “credit bank” your hours into the NMLS system within a few days. It’s a good idea to check your NMLS record to verify that the Late CE completion is reflected.
5) Apply for License Reinstatement
With your Late CE done, submit your renewal (reinstatement) application through NMLS. You’ll need to pay the renewal fee and any late/reinstatement fees your state requires. The NMLS system will guide you through the process. Once submitted, you may need to wait for state approval. Keep an eye on your NMLS status to see when your license switches back to active.
6) Double-Check Everything
Finally, confirm that your license is shown as renewed/active for the current year. Only then are you officially clear to originate loans again. It’s wise to save any confirmation emails or certificates from your CE in case any questions arise.
Following these steps allows most MLOs to successfully catch up on missed education and continue their careers with minimal downtime. The key is to act fast and complete the requirements within the allowed window.
Choosing the Right Late CE Courses
One common question is how to pick the right Late CE course, especially with many providers advertising solutions. Here are some tips to choose wisely.
Stick to NMLS-Approved Providers
Only courses from NMLS-approved providers will count. Check the NMLS course provider list or look for the NMLS provider ID on the website. Reputable companies will prominently display their approval.
Find Your State’s Requirements
Make sure the Late CE course covers any state-specific education you need. For instance, Late CE for a California-licensed MLO should include the California state-law hour if you’re under the CA-DFPI. A good provider will offer packages tailored to each state (e.g., “Late CE for FL MLOs” that includes Florida law content).
Match the Year
Late CE is year-specific. Ensure the course title matches the year of the missed CE. If you missed 2023, take the 2023 Late CE course. Taking the wrong one (like a 2024 course when you needed 2023) won’t fulfill the requirement.
Format and Convenience
Choose a format that you can complete quickly. Online self-paced Late CE courses are popular for their convenience. You can finish them in a day or two at home. Some providers also offer live webinars or classroom late CE, but those depend on schedules. When time is of the essence, an on-demand online class is usually the fastest route.
Quality and Support
A well-designed Late CE course will update you on important rule changes you missed. Read reviews or ask colleagues for recommendations on which courses were engaging and clear. Also, consider providers with good customer support in case you have issues accessing the course or reporting credits.
Cost Considerations
Late CE courses are typically priced similarly to standard CE, though you might pay a bit extra for the convenience of a last-minute class. Be wary of any provider charging exorbitantly high fees specifically for “late” courses. There are plenty of affordable, legitimate options. That said, don’t procrastinate further trying to save a buck. The cost of continuing to be unlicensed (lost business or state penalties) is much higher.
When you select the right course and provider, you’ll make the catch-up process as smooth as possible. Remember, the goal is to truly update your knowledge so you can step back into origination confidently and compliantly.
Keep Your License – and Your Knowledge – Up to Date
After you’ve gone through the Late CE process once, you’ll probably never want to do it again! Use this experience as motivation to stay on top of your continuing education in the future. Mark your calendar for next year’s deadline, set reminders, or even complete your CE early in the year when things might be less hectic. Many MLOs find that spreading the 8 hours over a few smaller sessions or tackling it in mid-year (before the holiday rush) works well.
Remember that regulations and mortgage programs evolve constantly. Completing your CE on time each year means you’re up to speed on changes that affect your business. In turn, that means better service for your clients and a smoother, worry-free renewal for you.
Late CE is simple... it’s a "lifeline" for mortgage loan officers who fall behind, allowing you to catch up on your mortgage license continuing education and maintain your livelihood. The penalties for missing CE are real, but with prompt action and the right course, you can recover quickly. Learn from the slip-up, stay on top of your education, and you won’t have to scramble with late credits again. Keep that license safe and active, and keep moving forward in your mortgage career!