Five More States to Use Uniform Mortgage Test; 35 States Now Using the Test


Washington, D.C. – October 1, 2013 – (RealEstateRama) — Five additional state agencies began using the new National SAFE MLO test today, bringing the total number of state agencies to 35 who have implemented this new test.

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The five state agencies adopting the new National SAFE MLO test today are:

• The District of Columbia Department of Insurance, Securities and Banking;
• The Hawaii Division of Financial Institutions;
• The Mississippi Department of Banking & Consumer Finance;
• The Texas Office of Consumer Credit Commissioner; and
• The Texas Department of Savings & Mortgage Lending.

Twenty state agencies initially adopted the National SAFE MLO test in April, and an additional 10 state agencies adopted the test in July.

The test, which was first made available on April 1, 2013, combines both the national and state testing requirements of the SAFE Act and streamlines the license application process for mortgage loan originators (MLOs) seeking licenses in multiple states.  The new test replaces the separate, state-specific test for the states that adopt it.  In addition, a short version of the uniform state test (the stand-alone UST) is available to take for a limited time.

More information on the National SAFE MLO test is available here.

Background Information:

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requires mortgage loan originators (MLOs) to pass the SAFE MLO test before they can be licensed with a state agency through the Nationwide Mortgage Licensing System and Registry (NMLS).  Prior to April 2013, the test was comprised of two parts: a national component and a state component.  In addition to passing the national component, MLOs seeking to hold licenses in multiple states were required to pass the state component for each state in which they wished to do business.  Under the new National SAFE MLO Test with uniform state content, a license applicant who passes the test will not need to take any additional state-specific tests to hold a license within participating states.  A separate version of the test, the Stand-alone UST, is available for existing licenses who may wish to seek licenses in additional states.

To date, a total of 35 state agencies are using the UST.  An additional two state agencies are scheduled to adopt the test by Jan. 2014.  Remaining state agencies will continue to require state-specific test components, though additional states are eventually expected to adopt the National SAFE MLO Test with uniform state content.

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Media Contacts: 
Catherine Woody, Senior Director of Communications, or 202.728.5733
Rockhelle Johnson, Manager of Communications, or 202.407.7156

About CSBS:
The Conference of State Bank Supervisors (CSBS) is the nationwide organization of banking regulators from all 50 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands.  State banking regulators supervise more than 5,250 state?chartered financial institutions.  Further, most state banking departments also regulate a variety of non-bank financial services providers, including mortgage providers.  For more than a century, CSBS has given state supervisors a national forum to coordinate supervision of their regulated entities and to develop regulatory policy.  CSBS also provides training to state banking and financial regulators and represents its members before Congress and the federal financial regulatory agencies.

About the State Regulatory Registry LLC
A subsidiary of the Conference of State Bank Supervisors (CSBS), the State Regulatory Registry LLC (SRR) is a non-profit entity that operates the Nationwide Mortgage Licensing System and Registry (NMLS) on behalf of state financial services regulatory agencies.  SRR is governed by an eight-member Board of Managers comprised of state banking and financial regulators and a representative of the American Association of Residential Mortgage Regulators (AARMR).  The SRR Board of Managers is responsible for all development, operations, and policy matters concerning NMLS.

About the Nationwide Mortgage Licensing System and Registry
The Nationwide Mortgage Licensing System and Registry (NMLS) is a web-based system that allows state-licensed non-depository companies, branches, and individuals in the mortgage, consumer lending, money services businesses, and debt collection industries to apply for, amend, update, or renew a license online for all participating state agencies using a single set of uniform applications.  Mortgage loan originators employed by insured depository institutions are also registered through NMLS.  NMLS brings greater uniformity and transparency to these non-depository financial services industries while maintaining and strengthening the ability of state regulators to monitor these industries and protect their citizens.  NMLS began operation on January 2, 2008.  All individual mortgage loan originators are represented in the system.