Mortgage loan originators in several states are no longer required to take a separate state and federal licensing test.
Originators are required by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 to pass the SAFE mortgage loan originator test before they can be licensed with a state agency through the Nationwide Mortgage Licensing System and Registry.
Prior to this past April, the test was comprised of a national component and a state component. Originators that operated in more than one state were required to pass the state component for each state where they originated.
But in April, a national test with uniform state content was developed.
The uniform test enables a license applicant who passes the test to avoid taking any additional state-specific tests in order to hold a license in a participating state.
In addition, an originator that already holds a licenses can take a stand-alone version of the uniform test in order to become licensed in additional participating states.
Initially, 20 states adopted the uniform test.
On Monday, the Conference of State Bank Supervisors announced that 10 more state agencies will now accept the uniform test.
The new states agencies are:
- Alabama State Banking Department
- Alaska Division of Banking and Securities
- Indiana Office of Secretary of State
- Kansas Office of the State Bank Commissioner
- Montana Division of Banking and Financial Institutions
- Nebraska Department of Banking and Finance
- New Jersey Department of Banking and Insurance
- Tennessee Department of Financial Institutions;
- Vermont Department of Financial Regulation
- Wyoming Division of Banking
Another five states are expected to get on board by January 2014.
“Today’s adoption of the new National SAFE MLO test by these agencies makes the application process easier for individuals seeking mortgage loan originator licenses in their state,” State Regulatory Registry LLC Chairman Bob Entringer said in the announcement. “An originator who passes the new test is compliant with the SAFE Act testing requirements in thirty states.”
Entringer is also the commissioner of the North Dakota Department of Financial Institutions.
