Scottsdale, Ariz. — The Conference of State Bank Supervisors (CSBS) and its affiliate – the State Regulatory Registry LLC (SRR) – today announced that efforts to develop content for a uniform mortgage loan originator (MLO) state test have begun.
An ad hoc committee composed of state regulators and chaired by Doug Foster, commissioner of the Texas Department of Savings and Mortgage Lending and vice chairman of SRR, has been charged with researching the feasibility of developing a uniform state test. In coordination with industry subject matter experts and test consultants, the committee has completed its initial feasibility studies and test development is now underway. Later this year, the committee plans to present a uniform test proposal to state regulators.
“This is only the first of many necessary steps in the process of determining content for a uniform MLO test,” said Foster. “Ultimately, and with recommendations from the states, the goal is to have a single test MLOs will be able to take that contains state content representative of all states.”
The SAFE MLO test is currently comprised of two parts – a national component and a state component. However, MLOs seeking to hold licenses in multiple states today must take the state component separately for each state.
“The Uniform State Test development initiative is an attempt by state regulators to reduce unnecessary burdens on industry,” Foster said. “We’ve heard the concerns of originators, determined that such a uniform test is feasible, and now we need to consider what we think the test should look like and exactly how best to implement.”