State bank supervisors are looking for a way to develop a uniform state test for mortgage loan originators, the Conference of State Bank Supervisors and State Regulatory Registry announced Tuesday. The organizations have begun work toward uniform content, including research on the feasibility of such an effort.
Initial feasibility studies have been done and test development is now under way, CSBS reported.
“This is only the first of many necessary steps in the process of determining content for a uniform MLO test,” said Doug Foster, commissioner of the Texas Department of Savings and Mortgage Lending and vice chairman of SRR. “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 current SAFE MLO test includes two parts: a national component and a state component—but those loan officers seeking licenses in multiple states must take the separate state components for each exam.
“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.”
Written by Elizabeth Ecker