10.2: Part II- Continuing Education

Continuing Education (CE) in real estate is training that the state of California requires for relicensing at certain times and regarding specific topics (see list below). Real estate careers that require CE for renewal of their licenses include real estate salespersons, real estate brokers, mortgage loan officers (MLO), and real estate appraisers.

Licensees need to submit proof of continuing education course completion either online at the DRE website or by printing and mailing the certificate to the DRE, the OREA, or the DFPI (depending on which license is being renewed), which will then send a certificate giving evidence of course completion. Plan ahead and schedule your continuing education courses early! If the DRE or other agency has a long or delayed approval period, waiting until the last minute could render the license expired or inactive–and you would be unable to engage in your profession until the license is renewed.

The cost of continuing education (CE) courses is typically the responsibility of the licensee. In some cases, the employer may offer CE courses at their own expense to ensure that employees’ licenses stay current and that they will be able to continue working without interruption.

Specific careers are shown below along with their respective continuing education licensing agency and requirements. Note that these requirements may change–the DRE, for example, has added a course on implicit bias. Verify the current CE requirements for your profession on the official website or contact the agency directly.

California Real Estate Salesperson and Broker

The California Department of Real Estate (DRE) specifies the requirements for real estate salesperson and broker renewals.

Salesperson renewing for the first time

Real estate salespersons renewing an original license for the first time must complete 45 clock hours of DRE-approved continuing education consisting of:

• four separate three-hour courses in the following subjects: ethics, agency, trust fund handling, and risk management, and a three-hour course in fair housing, which must include an interactive participatory component during which the licensee will role-play as both a consumer and a real estate professional; and
• a two-hour course in implicit bias; and
• a minimum of 18 hours of consumer protection courses; and
• the remaining clock hours to complete the 45 hours of continuing education courses may be related to either consumer service or consumer protection.

Brokers renewing for the first time

California real estate brokers renewing an original license for the first time must complete 45 clock hours of DRE-approved continuing education consisting of:

• five separate three-hour courses in the following subjects: ethics, agency, trust fund handling, risk management, management and supervision, and a three-hour course in fair housing, which must include an interactive participatory component during which the licensee will role-play as both a consumer and a real estate professional; and
• a two-hour course in implicit bias; and
• a minimum of 18 hours of consumer protection courses; and
• the remaining clock hours to complete the 45 hours of continuing education courses may be related to either consumer service or consumer protection.

All Licensees, Second and Subsequent Renewals

For subsequent renewals, all licensees with a license expiration date on or after January 1, 2023, or who are renewing on a late basis after January 1, 2023, must complete 45 hours of DRE approved continuing education consisting of:

• one nine-hour CE survey course that covers the seven mandatory subjects (ethics, agency, trust fund handling, risk management, management and supervision, fair housing and implicit bias) OR licensees can choose to take individual courses in all of those mandatory subjects;
• a minimum of 18 hours of CE courses in the category of consumer protection; and
• the remaining clock hours to complete the 45 hours of continuing education may be related to either consumer service or consumer protection courses.

Source: https://www.dre.ca.gov/Licensees/CERequirements.html

Mortgage Loan Originators (MLO)

A Mortgage Loan Originator (MLO) is a financial professional who helps individuals and businesses secure mortgage loans to purchase or refinance real estate properties. These professionals are critical to the mortgage lending process: they connect borrowers with lenders and guide them through the complex loan application and approval process, helping assure that borrowers make informed decisions for their financial circumstances. Mortgage Loan Originators can work for banks, credit unions, mortgage brokerage firms, or as independent professionals. (See also Module 1.)

The Continuing Education (CE) requirements for Mortgage Loan Originators (MLOs) in California are governed by the California Department of Financial Protection and Innovation (DFPI). As mentioned for the DRE, these DFPI requirements may change over time, so verify the current CE requirements with the DFPI or the Nationwide Multistate Licensing System & Registry (NMLS) for the most up-to-date information.

National Mortgage Licensing System (NMLS - federal) and Nationwide Multistate Licensing System & Registry (NMLS) or (DFPI or DRE-state).

Annual CE Hours: MLOs in California are required to complete 8 hours of CE each year including:

• Ethics Course: Among the 8 hours, one hour must be dedicated to an approved course on ethics.
• Content: CE courses must cover topics related to mortgage lending, California state-specific regulations, federal laws, ethics, consumer protection, and other relevant subjects.
• Deadlines: CE hours must be completed by December 31 each year to meet the annual renewal deadline for MLO licenses in California.

Sources: California Department of Financial Protection and Innovation (DFPI)
https://dfpi.ca.gov/

National Mortgage Licensing System (NMLS)

https://mortgage.nationwidelicensingsystem.org/Pages/default.aspx

Real Estate Appraisers

A real estate appraiser is a trained and licensed professional who specializes in estimating the value of real property. Appraisers provide an unbiased and objective assessment of a property's worth, often referred to as its market value. Real estate appraisers are key to various real estate-related transactions and activities, including home purchases, mortgage lending, property taxation, and investment analysis. See also Module 1.

Bureau of Real Estate Appraisers (BREA)

The Bureau of Real Estate Appraisal (BREA) in California requires real estate appraisers to complete 56 hours of specific continuing education (CE) requirements for license renewal, including:

• the 7-hour National USPAP Update Course or its equivalent as determined by the Appraiser Qualifications Board (AQB)
• the 4-hour course entitled Federal and State Laws and Regulation
• 1 hour of Cultural Competency
• 2 hours of Elimination of Bias
• a minimum of 35 hours of additional approved continuing education

Completing CE requirements is essential to maintaining a valid appraisal license and staying current with industry standards and practices.

Source: Bureau of Real Estate Appraisers https://brea.ca.gov/

Practice Zone

Research and identify one continuing education course for each of the professions discussed above: Real Estate Salesperson, Real Estate Broker, Real Estate Appraiser, and MLO. Describe the required courses and tell why you think they are important in that profession.