A national uniform test for loan originators to meet the requirements of the Secure and Fair Enforcement for Mortgage Licensing Act will replace state-specific tests required in two dozen states.
The SAFE act requires mortgage loan originators to pass a test before becoming state-licensed. The test includes a national component and a state component.
A new National SAFE mortgage loan originator test with a uniform state component has been created. The new test will become available on April 1.
Once the new test is implemented, originators moving between impacted states will no longer need take a second, state-specific test in order to obtain a license, an announcement from the Conference of State Bank Supervisors said.
“Under the new National SAFE MLO Test with a uniform state component, a license applicant who passes the test will not need to take any additional state-specific tests to hold a license with 24 state agencies,” according to the news release.
The state-specific component will be eliminated on April 1 by licensing agencies in 20 states: Delaware, Georgia, Idaho, Indiana (Department of Financial Institutions), Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Hampshire, North Carolina, North Dakota, Pennsylvania, South Dakota, Texas (Office of Consumer Credit Commissioner), Utah (Department of Financial Institutions), Virginia, Washington, and Wisconsin.
Another four states — Alaska, Kansas, Nebraska, and Vermont — will adopt the uniform test on July 1.
The conference said additional states are eventually expected adopt the uniform test.
“We’re announcing now, weeks before the launch of the new National SAFE MLO Test, so MLOs can plan and prepare to take full advantage of the benefits provided by this initiative,” Bob Entringer, commissioner of the North Dakota Department of Financial Institutions and chairman of the State Regulatory Registry LLC, said in the statement.
