Washington, DC—The Conference of State Bank Supervisors (CSBS) today announced that a new National SAFE MLO Test with a uniform state component will be available on April 1, 2013. With the implementation of this new test, 24 state agencies will no longer require a second, state-specific test component to be taken by mortgage loan originators (MLOs) seeking licensure with their state agency.
With the implementation of the new National SAFE MLO Test with a uniform state component, 20 state agencies – Delaware, Georgia, Idaho, Indiana DFI, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Hampshire, North Carolina, North Dakota, Pennsylvania, South Dakota, Texas OCCC, Utah DFI, Virginia, Washington, and Wisconsin – will no longer require a state-specific test component as of April 1, 2013. Additionally, four state agencies – Alaska, Kansas, Nebraska, and Vermont – will remove their requirement for a state-specific component on July 1, 2013. Remaining state agencies will continue to require state-specific test components, though additional states are eventually expected to adopt the new National SAFE MLO Test with a uniform state component.
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requires MLOs to pass the SAFE MLO test before they can be licensed with a state agency through NMLS. The test was comprised of two parts: a national component and a state component. In addition to passing the national component, MLOs seeking to hold licenses in multiple states were required to pass the state component for each state in which they wish to do business. 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.
“The development and adoption of the new National SAFE MLO Test with a uniform state test component streamlines the license process for MLOs seeking licenses in multiple states,” said Bob Entringer, Commissioner of the North Dakota Department of Financial Institutions and Chairman of the State Regulatory Registry LLC. “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.”
More information on the new National SAFE MLO Test with a uniform state component is available here.