Three additional state agencies announced this week that they will join a nationwide mortgage loan officer test, according to the Mortgage Bankers Association (MBA).
The Indiana Secretary of State, the Montana Divison of Banking and Financial Institutions and the Wyoming Secretary of State will adopt the National SAFE MLO Test Component effective July 1.
Earlier this month, 20 states announced they would adopt the uniform state test (UST). More states have embraced the UST since then, bringing the current total number of agencies to 30, reports MBA.
“Momentum continues to build behind MBA’s advocacy, which is yielding real results for our state regulated member companies,” said William Kooper, MBA associate vice president of state government affairs and industry relations. “With a solid swath of the mountain states on board now, we can really focus on engaging with the remaining non-adopters on the need for greater uniformity among states.”
The test fulfills a provision from the Secure and Fair Enforcement (SAFE) for Mortgage Licensing Act of 2008, requiring that mortgage loan originators employed by state-regulated companies pass a SAFE MLO test before they can receive licensing through the National Mortgage Licensing System.
The 125-question UST replaces the existing 100-question national test for mortgage loan originators, and is available to MLOs nationwide, regardless of whether their state is an early adopter of the new test, according to MBA.
Under the new test, passing applicants will not be required to take any additional state-specific tests to hold a license with current or future subscribing state agencies, writes MBA.
Written by Jason Oliva