§454F-7 Testing of mortgage loan originators.

330 words·~2 min read·/hi/454f-7

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)To meet the written test requirement in section 454F-5, an applicant for licensure as a mortgage loan originator shall pass, in accordance with the standards established under this section, a qualified written test developed by NMLS and administered by a test provider approved by NMLS based upon reasonable standards.

(b)A written test shall not be treated as a qualified written test for purposes of subsection

(a)unless the test adequately measures the applicant's knowledge and comprehension in appropriate subject areas, including:

(1)Ethics;

(2)Federal law and regulations pertaining to mortgage origination;

(3)The State's law and rules pertaining to mortgage origination; and

(4)Federal and the State's law, rules, and regulations, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues.

(c)Nothing in this section shall prohibit a test provider approved by NMLS from providing a test at the location of the employer of the applicant, the location of any subsidiary or affiliate of the employer of the applicant, or the location of any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.

(d)An individual shall have passed a qualified written test if the individual achieves a test score of seventy-five per cent of the correct answers to questions or better. An individual may take a test three times with each retest occurring at least thirty days after the preceding test. After failing three consecutive tests, an individual shall wait at least six months before taking the test again. A licensed mortgage loan originator who fails to maintain a valid license for a period of five years or longer not taking into account any time during which the individual is an exempt registered mortgage loan originator, shall retake the test. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §14; am L 2013, c 168, §9; am L 2016, c 122, §10]