Last Updated: March 2026 · South Dakota Division of Banking requirements verified
How to Get Your South Dakota MLO License (2026)
Compare 8 NMLS-approved South Dakota mortgage loan originator schools. No state-specific exam. No state income tax. 20 national SAFE hours and you're on your way.
Course Cost
$159 – $400
Time to License
4 – 14 weeks
Avg Total Comp
$75K – $111K+
Required Hours
20 hours
Top 3 South Dakota MLO Schools at a Glance
1. RealEstateU
Best value for South Dakota MLO licensing. 20hr national SAFE course — no state hours required. Lowest price when you apply the CERTLAUNCH discount.
$159.20
with code CERTLAUNCH
2. Diehl Education
SD-approved NMLS provider with Prep2Pass exam prep included. Flexible OIL and live stream webinar formats available.
$249
3. 24hourEDU
All-in-one package with 20hr SAFE course, exam prep, and NMLS reporting all included at no extra cost. South Dakota explicitly supported.
$275
Best Real Estate Schools in South Dakota
All 8 schools are South Dakota SD Division of Banking / NMLS-approved. Price: Low to High.
Quick Price Comparison (Course Only)
RealEstateU
Best ValueStarting at
$199
$159.2
- 20hr national SAFE — no SD state hours required
- Audio-based lessons for studying on the go
- NMLS Provider #1405093
- Permanent sale pricing + extra 20% off with CERTLAUNCH
Available Packages (3)
SD MLO License Course + e-Textbook
- 20-hour SAFE National Course
- e-Textbook
- NMLS credit banking included
- NMLS-approved certificate
Diehl Education
Starting at
$249
- SD-approved NMLS provider #1400133
- Prep2Pass exam prep included in bundle
- Live stream webinar option available
- Flexible OIL scheduling
Available Packages (1)
7-Day OIL Bundle (including Prep2Pass)
- 20-hour SAFE National Course (7-day OIL)
- Prep2Pass exam prep
- NMLS-approved certificate
24hourEDU
Starting at
$275
- Exam prep included free — no upsells
- South Dakota explicitly supported
- NMLS reporting included
- NMLS Provider #1405107
Available Packages (1)
20-Hour NMLS National Course + Exam Prep
- 20-hour SAFE National Course (#16623)
- Exam prep course (free)
- NMLS reporting included
- NMLS-approved certificate
OnlineEd
Starting at
$279
- South Dakota explicitly listed as supported state
- Test prep, flashcards, and exam simulator included
- NMLS-approved provider
- Note: $30 NMLS Credit Banking Fee is additional
Available Packages (1)
20-Hour Deluxe (includes test prep + flashcards + exam simulator)
- 20-hour SAFE National Course
- Practice tests + flashcards
- Exam simulator
- NMLS Credit Banking Fee: +$30 (additional)
OnCourse Learning
Starting at
$309
- NMLS Provider #1400013
- Multiple format options — OIL and live webinar
- No SD state hours required — national only
- Premier Plus includes eBook and live instruction
Available Packages (3)
Standard 20 Hour (7-Day OIL)
- 20-hour SAFE National Course
- 7-day OIL format
- NMLS-approved certificate
The CE Shop
Starting at
$329
- Well-established national NMLS provider
- No SD state hours — 20hr national only
- Interactive content with progress tracking
- Three package tiers including exam prep
Available Packages (3)
Course Only (20hr SAFE)
- 20-hour SAFE Comprehensive Course
- NMLS-approved certificate
Mortgage Educators & Compliance
Starting at
$349
- SD-specific pre-licensing page
- NMLS Provider #1400062
- No SD state hours — national only
- Test prep included in bundle
Available Packages (1)
SD Education Bundle (20hr SAFE)
- 20-hour SAFE pre-licensing course
- National UST exam prep
- NMLS-approved certificate
Cape School
Starting at
$400
- NMLS-approved provider
- TestPrep simulator, On-Demand video, flashcards included
- eTextbook included ($346 value in exam prep tools)
- Weekly instructor-led sessions
Available Packages (1)
20-Hour Path to Success (all-inclusive)
- 20-hour SAFE National Course
- TestPrep simulator
- On-Demand video review
- Flashcards + eTextbook
Prices verified March 2026. Prices may change. Always confirm current pricing on the school's website before enrolling.
How Much Do South Dakota MLOs Earn?
Base / Salaried Positions
$45,000 – $65,000
Source: Salary.com (2026)
Total Comp (commission-based)
$75,000 – $111,000+
High-producing South Dakota MLOs
Commission Structure
Most South Dakota MLOs earn a commission on every closed loan — typically 0.5% to 1.0% of the loan amount. With a statewide median home value around $320,000, a 1% commission generates $3,200 per closing. Close 5 loans per month and you're looking at $192,000 in gross annual commission. Most new MLOs close 1–3 loans per month in year one while building their referral network.
Top Markets in South Dakota
South Dakota Advantage: South Dakota has zero state income tax — meaning MLOs keep every dollar of their commissions without a state tax bite. Combined with a lower cost of living than most states, your net take-home goes further here than in high-tax coastal markets.
South Dakota MLO Income Summary
South Dakota mortgage loan originators earn an average of $45,000–$65,000 in base or salaried roles and $75,000–$111,000+ in commission-based positions (Salary.com, 2026). Top producers in Sioux Falls and Rapid City regularly exceed $150,000 annually. With a statewide median home value of approximately $320,000 and typical MLO commissions of 0.5%–1.0% of the loan amount, each closing generates roughly $1,600–$3,200 in commission. South Dakota's zero state income tax means MLOs retain their full commission earnings — a meaningful advantage over peers in high-tax states. Most new MLOs close 1–3 loans per month in year one while building their referral network.
Income Disclaimer: Salary figures are estimates based on publicly available data and vary significantly by state, market, experience level, employer type, and individual effort. Past or average earnings are not a guarantee of future results. CertLaunch makes no income guarantees of any kind.
Sources:
Licensing requirements, exam fees, and course availability change frequently. Always verify current requirements with your state licensing board before enrolling or submitting any application. Learn how we source our data.
Is a South Dakota MLO License Worth It?
👍 Pros
- + No State Income Tax: South Dakota has no personal state income tax — MLOs keep more of every commission dollar they earn.
- + No State Exam: Only the 20-hour national SAFE course and national exam are required — no SD-specific test to prepare for.
- + Low Startup Cost: Total licensing costs under $700, with course options starting at $159.20 using code CERTLAUNCH.
- + Growing Market: Sioux Falls is among the fastest-growing mid-size cities in the U.S., fueling steady loan demand.
- + Business-Friendly State: South Dakota's minimal regulatory environment and strong financial services industry make it easy to build a practice.
👎 Cons
- - Smaller Population: ~900,000 residents limits total loan volume compared to large coastal states.
- - Lower Average Loan Sizes: Modest home prices mean lower per-loan commission than high-cost markets.
- - Seasonal Slowdowns: Harsh winters in western SD can slow purchase activity in Q4–Q1.
- - Commission-Based Income: MLO earnings fluctuate with interest rate cycles and housing market conditions.
- - SAFE Exam Difficulty: ~54% first-attempt pass rate nationally — dedicated exam prep is essential.
What Is a Mortgage Loan Originator (MLO)?
A Mortgage Loan Originator (MLO) — also called a loan officer or mortgage banker — is a licensed professional who works directly with homebuyers and property owners to originate residential mortgage loans. MLOs collect financial information, evaluate borrower eligibility, and guide clients from application through closing.
In South Dakota, all MLOs must be licensed through the Nationwide Multistate Licensing System (NMLS) and approved by the South Dakota Division of Banking. Federal law (the SAFE Mortgage Licensing Act) establishes the baseline: 20 hours of pre-licensing education, a national exam, and ongoing background and credit checks.
Who they help
Homebuyers, refinancers, investors, and first-time buyers seeking residential mortgages
Where they work
Banks, credit unions, independent mortgage companies, and mortgage brokerages across South Dakota
How they earn
Commission on each closed loan — typically 0.5%–1% of the loan amount — plus base salary at many employers
How to Get Your South Dakota MLO License
Create Your NMLS Account & Get Your NMLS ID
Register at statemortgageregistry.com to create your NMLS account. You'll receive a permanent NMLS ID number that stays with you throughout your entire mortgage career across all states.
Complete 20 Hours of NMLS-Approved Pre-Licensing Education
Enroll in a 20-hour NMLS-approved national pre-licensing course. South Dakota does not require any additional state-specific hours — the 20-hour national SAFE curriculum is the only requirement. All schools listed above are NMLS-approved and can be completed fully online.
Pass the SAFE MLO National Exam
Schedule your SAFE exam through Prometric via your NMLS portal. The exam costs $110, has 115 scored questions, and requires a 75% passing score. Study with exam prep materials — the national first-attempt pass rate is approximately 54–56%.
Complete Criminal Background Checks & Fingerprinting
Log into your NMLS account, navigate to the Filing section, and authorize the Federal Criminal Background Check. Schedule your fingerprinting appointment through Fieldprint (via NMLS portal → Composite View → Criminal Background Requests). Total cost: $36.25.
Submit Your NMLS License Application
Apply through the NMLS licensing portal using the SD MLO New Application Checklist. Pay the $150 South Dakota state license fee, $15 credit report fee, and ~$30 NMLS processing fee. Reference the SD Division of Banking checklist at dlr.sd.gov/banking for all required disclosures.
Secure Employer Sponsorship
Your South Dakota MLO license will remain in pending status until your employing company links you in NMLS. Go to Form Filing Home → Company Access to connect your sponsor. Your license activates once sponsorship is verified by the SD Division of Banking.
South Dakota MLO License Requirements
Eligibility Requirements
- Minimum age: 18 years old
- No college degree required
- Must pass FBI federal background check
- Must authorize credit report pull (NMLS MU4)
- Must demonstrate financial responsibility
- No prior MLO license revocation in any state
Education & Exam Requirements
- 20 hours of NMLS-approved pre-licensing education
- No SD state-specific hours required
- Pass the SAFE MLO National Exam (Prometric)
- No SD state exam — national exam only
- 8 hours CE required annually for renewal
Pre-Licensing Education Breakdown (20 Hours)
Official Regulator: South Dakota MLO licenses are issued by the South Dakota Division of Banking (SD DLR). Visit their website for the official MLO New Application Checklist, current fee schedules, and approved CE provider lists.
South Dakota MLO License Cost Breakdown
Here's the complete breakdown of what it costs to get your South Dakota MLO license in 2026:
| Pre-Licensing Education (20 hours) | $199 – $400 | Use CERTLAUNCH for 20% off RealEstateU |
| SAFE Exam Fee | $110 – $110 | Prometric (scheduled via NMLS) |
| SD State License Fee | $150 – $150 | SD Division of Banking |
| NMLS Processing Fee | $30 – $30 | Nationwide Multistate Licensing System |
| Credit Report Fee | $15 – $15 | Pulled with MU4 application |
| FBI Background Check (Fieldprint) | $36.25 – $36.25 | Federal fingerprinting via Fieldprint |
| Estimated Total | $540 – $741+ | Save 20% on education with CERTLAUNCH |
All state and federal fees are non-refundable. Education costs vary by provider and package selected.
The SAFE MLO Exam — What to Expect
Exam Details
- Exam name: SAFE Mortgage Loan Originator Test (National Component)
- Scored questions: 115 (plus 10 unscored pretest items)
- Total questions: 125
- Passing score: 75% (86 of 115 correct)
- Time allowed: 3 hours, 10 minutes
- Exam fee: $110
- Provider: Prometric
- State-specific component: None required
Exam Topic Areas
- Federal mortgage-related laws (~23%)
- General mortgage knowledge (~23%)
- Mortgage loan origination activities (~25%)
- Ethics in mortgage lending (~16%)
- Uniform state content (~13%)
Retake Policy
- • 1st & 2nd failure: 30-day wait before retake
- • 3rd+ failure: 180-day wait before retake
💡 SAFE Exam Tip
The national first-attempt pass rate for the SAFE exam is approximately 54–56%. Investing in exam prep materials — practice tests, flashcards, and simulated exams — significantly improves your odds. Schools like Diehl Education (Prep2Pass), 24hourEDU, and Cape School include exam prep at no extra cost. The CE Shop and OnCourse Learning offer exam prep as part of higher-tier packages.
How Long Does It Take to Get a South Dakota MLO License?
4 – 6 weeks
Fast Track
Dedicated full-time study
8 – 12 weeks
Part-time
Studying 1–2 hours/day
3 – 5 months
Casual pace
A few hours per week
| Step | Activity | Time |
|---|---|---|
| 1 | Create NMLS account & get NMLS ID | 1–2 days |
| 2 | Complete 20-hour SAFE pre-licensing education | 1–2 weeks |
| 3 | Study for & pass the SAFE exam | 1–3 weeks |
| 4 | Complete fingerprinting (Fieldprint appointment) | 1–2 weeks |
| 5 | Submit NMLS MU4 license application | 1–3 days |
| 6 | SD Division of Banking reviews application | 1–3 weeks |
| 7 | Employer submits sponsorship in NMLS | 1–3 days |
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Explore MLO Licensing in Nearby States
Thinking about getting licensed in multiple states? South Dakota's neighbors are a natural starting point.
Frequently Asked Questions
Do I need a college degree to get an MLO license in South Dakota?
No. South Dakota does not require a college degree or high school diploma for MLO licensure. You need to be at least 18 years old, complete 20 hours of NMLS-approved pre-licensing education, pass the national SAFE exam, and clear background and credit checks. Most employers, however, prefer candidates with at least a high school diploma or equivalent.
How long does it take to get an MLO license in South Dakota?
A dedicated applicant can complete the process in 4–6 weeks: roughly 1–2 weeks for the 20-hour online coursework, 1–2 weeks of exam prep, a few days to schedule and take the exam, and 1–3 weeks for application processing and background check results. Part-time candidates typically take 8–12 weeks.
Is there a South Dakota-specific exam component?
No. South Dakota only requires the national SAFE MLO Test. Unlike some states that add a state-specific test module, South Dakota relies solely on the 115-question national exam administered through NMLS and Prometric. This makes the process simpler and more affordable than in states with dual exams.
How much does it cost to get an MLO license in South Dakota?
Plan on spending approximately $540–$691 in total. This includes: pre-license education ($199–$350), the SAFE exam ($110), the South Dakota state license fee ($150), background check and fingerprinting ($36.25), credit report ($15), and NMLS processing fees (~$30). Using code CERTLAUNCH for 20% off RealEstateU brings education down to $159.20.
What score do I need to pass the SAFE MLO exam?
You need a score of 75% or higher, meaning you must answer at least 86 of the 115 scored questions correctly. The exam contains 125 total questions (115 scored plus 10 unscored pretest items). You have 3 hours and 10 minutes to complete it.
What happens if I fail the SAFE exam?
After a first or second failure, you must wait 30 days before retaking the exam. After a third or subsequent failure, you must wait 180 days. There is no limit on the total number of attempts. The national first-attempt pass rate is approximately 54–56%, so thorough preparation with practice tests is strongly advised.
Do I need a sponsor (employer) before I can apply for my license?
You can complete all steps — education, exam, background checks, and application — before securing a sponsor. However, your license will remain in pending status and cannot be activated until a licensed mortgage company sponsors you through NMLS. Most candidates either have a job offer in hand or apply for licensure while actively job hunting.
How do I renew my South Dakota MLO license each year?
Annual renewal requires: completing 8 hours of NMLS-approved continuing education (CE), paying the NMLS annual processing fee (~$30) and South Dakota renewal fee (~$75–$100), and confirming your sponsorship remains active. The renewal window typically opens November 1 and closes December 31 each year.
Can I get an MLO license in South Dakota with a criminal record?
It depends on the offense. Any felony involving fraud, dishonesty, breach of trust, or money laundering results in a permanent bar from MLO licensure. Other felonies within the last 7 years may also result in denial. Misdemeanors are reviewed on a case-by-case basis. Disclose any record upfront through NMLS — omissions can result in denial for lack of candor.
How much can I realistically earn as a new MLO in South Dakota?
In year one, most new MLOs earn $35,000–$60,000 as they build their pipeline. By year two or three with consistent production, $75,000–$110,000 is achievable. Top producers in South Dakota's major markets (Sioux Falls, Rapid City) regularly earn $150,000+. Because MLO income is commission-based, earnings scale directly with the number of loans you close — relationship-building and referral networks are the key to top-tier income.