Washington, D.C.—Ten additional state agencies will begin using the new National SAFE MLO test today, bringing the total number of state agencies to 30 who have implemented this new test. The test, which was first made available on April 1, 2013, combines both the national and state testing requirements of the SAFE Act and streamlines the license application process for mortgage loan originators (MLOs) seeking licenses in multiple states. The new test replaces the separate, state-specific test for the states that adopt it. In addition, a short version of the uniform state test (the stand-alone UST) is available to take for a limited time.
“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,” said Bob Entringer, Commissioner of the North Dakota Department of Financial Institutions and Chairman of the State Regulatory Registry LLC. “An originator who passes the new test is compliant with the SAFE Act testing requirements in thirty states.”
Twenty state agencies initially adopted the National SAFE MLO test in April, and an additional 10 state agencies will adopt it today. These state agencies are:
• The Alabama State Banking Department;
• The Alaska Division of Banking and Securities;
• The Indiana Office of Secretary of State;
• The Kansas Office of the State Bank Commissioner;
• The Montana Division of Banking and Financial Institutions;
• The Nebraska Department of Banking and Finance;
• The New Jersey Department of Banking and Insurance;
• The Tennessee Department of Financial Institutions;
• The Vermont Department of Financial Regulation; and
• The Wyoming Division of Banking.
More information on the National SAFE MLO test is available here.
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requires mortgage loan originators (MLOs) to pass the SAFE MLO test before they can be licensed with a state agency through the Nationwide Mortgage Licensing System and Registry (NMLS). Prior to April 2013, 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 wished to do business. Under the new National SAFE MLO Test with uniform state content, a license applicant who passes the test will not need to take any additional state-specific tests to hold a license within participating states. A separate version of the test, the Stand-alone UST, is available for existing licenses who may wish to seek licenses in additional states.
To date, a total of 30 state agencies are using the UST. An additional five state agencies are scheduled to adopt the test by Jan. 2014. Remaining state agencies will continue to require state-specific test components, though additional states are eventually expected to adopt the National SAFE MLO Test with uniform state content.