Bank Supervisors Set Sights on Uniform Loan Officer State Test

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.”

Advertisement

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

Join the Conversation (3)

see all

This is a professional community. Please use discretion when posting a comment.

  • I do not see it happening. They are banging LO’s over the head in fees each year if they want to be licensed in multiple states. It still boggles my mind that we have to do this, but major banks do not. Government at its finest.

    • Richard,

      This is not about less fees.  

      This is about apparent discrimination and the states wanting originators to pay as many licensing fees as possible by expanding the number of states they are eligible to license in once they pass a uniform state exam.  It saves costs at the state level in trying to maintain separate examination standards, etc.  If anything, everyone will make MORE money.

string(107) "https://reversemortgagedaily.com/2012/02/07/bank-supervisors-set-sights-on-uniform-loan-officer-state-test/"

Share your opinion