Mortgage Bankers Push for Uniform State LO Exam in 50 States [correction]

With 20 states announcing adoption of the uniform state test this week and more expected to accept it on a quarterly basis moving forward, there’s an initiative in place to get all states on board to streamline the licensing process across the United States, says the Mortgage Bankers Association.

Part of the challenge, says Pete Mills, Mortgage Bankers Association senior VP of Residential Policy and Member Services, is a lack of understanding on the part of different state governing bodies about the benefits of streamlining the test. The MBA has worked toward this adoption and is continuing its efforts.

“We’re focusing on encouraging non-adopting states to get on the train,” Mills says. “We are actively working with the state MBAs to bring some advocacy resources behind it and we’re talking to the Conference of State Bank Supervisors about barriers. In some states, there is just a lack of understanding about what the UST is all about.”

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The adoption so far has been positive, with the hope to continue momentum for additional states.

“We wish there were a greater percentage, but we are happy that in less than four months we have more than half the states,” he says.

A shift toward acceptance of a uniform state exam for loan originators may stand to most benefit the call center model of loan originations, or those companies that employ originators who are licensed in multiple states.

And while still a lofty goal for all 50 states, if it is achieved, those mortgage origination companies that serve many states, or those who employ originators who hold multiple state licenses may be positioned to benefit because they employ originators licensed across several states.

“There’s a certain momentum it will build, particularly for a call center operation,” says . “If I was putting in a call center today, I’d be putting it in a state that has the UST where there are actually some economic benefits.”

Those already operating call centers may also consider ramping up marketing efforts in the states where the UST has been adopted.

Editor’s note: A previous headline for this article misrepresented the nature of the exam; the MBA is advocating for full adoption by 50 states of the Uniform State Test for loan originators.

Written by Elizabeth Ecker

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  • Sooo….You already take a National NMLS test and then the specific state to familiarize
    yourself with specific state regulations- and now they are trying to combine
    into a National-State test on top of the National NMLS test… What possible
    benefit could this have and why would they just not alter the National to adopt
    the proposed educational benefits of adding yet another test , not to mention
    the cost to the industry and Govt. to police this. They are turning this into a
    “Rube Goldberg Machine”

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