13-10-06. Prelicensing and relicensing education of loan originators.
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/nd/title-13/chapter-13-10-mortgage-loan-originators/13-10-06·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. To meet the prelicensing education requirement referred to in subsection 4 of section
13-10-05, a person shall complete at least twenty hours of education approved in
accordance with subsection 2, which must include at least:
a. Three hours of federal law and regulations;
b. Three hours of ethics, which shall include instruction on fraud, consumer
protection, and fair lending issues; and
c. Two hours of training related to lending standards for the nontraditional mortgage
product marketplace.
2. For purposes of subsection 1, prelicensing education courses must be reviewed and
approved by the nationwide mortgage licensing system and registry based upon
reasonable standards. Review and approval of a prelicensing education course must
include review and approval of the course provider.
3. Nothing in this section precludes any prelicensing education course, as approved by
the nationwide mortgage licensing system and registry, which is provided by the
employer of the applicant or an entity that is affiliated with the applicant by an agency
contract or any subsidiary or affiliate of such employer or entity.
4. Prelicensing education may be offered in a classroom, online, or by any other means
approved by the nationwide mortgage licensing system and registry.
5. The prelicensing education requirements approved by the nationwide mortgage
licensing system and registry in subsection 1 for any state shall be accepted as credit
toward completion of prelicensing education requirements in North Dakota.
6. A person previously licensed under this chapter after the effective date of this chapter
applying to be licensed again must prove that that person has completed all of the
continuing education requirements for the year in which the license was last held.
13-10-07. Testing of loan originators. 1. In order to meet the written test requirement referred to in subsection 5 of section
13-10-05, an individual must pass, in accordance with the standards established under
this subsection, a qualified written test developed by the nationwide mortgage
licensing system and registry and administered by a test provider approved by the
nationwide mortgage licensing system and registry based upon reasonable standards. 2. A written test shall not be treated as a qualified written test for purposes of
subsection 1 unless the test adequately measures the applicant's knowledge and
comprehension in appropriate subject areas, including:
a. Ethics;
b. Federal law and regulation pertaining to mortgage origination;
c. State law and regulation pertaining to mortgage origination; and
d. Federal and state law and regulation, including instruction on fraud, consumer
protection, the nontraditional mortgage marketplace, and fair lending issues. 3. Nothing in this section prohibits a test provider approved by the nationwide mortgage
licensing system and registry from providing a test at the location of the employer of
the applicant or 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. 4. a. An individual shall not be considered to have passed a qualified written test
unless the individual achieves a test score of not less than seventy-five percent
correct answers to questions.
b. An individual may retake a test three consecutive times, with each consecutive
taking occurring at least thirty days after the preceding test.
c. After failing three consecutive tests, an individual shall wait at least six months
before taking the test again.
d. A licensed mortgage loan originator who fails to maintain a valid license for a
period of five years or longer shall retake the test, not taking into account any
time during which individual is a registered mortgage loan originator.
13-10-08. Standards for license renewal. 1. The minimum standards for license renewal for mortgage loan originators include the
following:
a. The mortgage loan originator continues to meet the minimum standards for
license issuance under section 13-10-05.
b. The mortgage loan originator has satisfied the annual continuing education
requirements described in section 13-10-09.
c. The mortgage loan originator has paid all required fees for renewal of the license. 2. The license of a mortgage loan originator failing to satisfy the minimum standards for
license renewal shall expire. The commissioner may adopt procedures for the
reinstatement of expired licenses consistent with the standards established by the
nationwide mortgage licensing system and registry.
13-10-09. Continuing education for mortgage loan originators. 1. To meet the annual continuing education requirements referred to in section 13-10-08,
a licensed mortgage loan originator shall complete at least eight hours of education
approved in accordance with subsection 2, which must include at least:
a. Three hours of federal law and regulations;
b. Two hours of ethics, which shall include instruction on fraud, consumer
protection, and fair lending issues; and
c. Two hours of training related to lending standards for the nontraditional mortgage
product marketplace.
2. For purposes of subsection 1, continuing education courses shall be reviewed and
approved by the nationwide mortgage licensing system and registry based upon
reasonable standards. Review and approval of a continuing education course must
include review and approval of the course provider.
3. Nothing in this section precludes any education course, as approved by the nationwide
mortgage licensing system and registry, which is provided by the employer of the
mortgage loan originator or an entity that is affiliated with the mortgage loan originator
by an agency contract or any subsidiary or affiliate of such employer or entity.
4. Continuing education may be offered in a classroom, online, or by any other means
approved by the nationwide mortgage licensing system and registry.
5. For a licensed mortgage loan originator:
a. Except as allowed by subsection 2 of section 13-10-08 and subsection 9 of this
section, an individual may only receive credit for a continuing education course in
the year in which the course is taken; and
b. An individual may not take the same approved course in the same or successive
years to meet the annual requirements for continuing education.
6. A licensed mortgage loan originator who is an approved instructor of an approved
continuing education course may receive credit for the licensed mortgage loan
originator's own annual continuing education requirement at the rate of two hours
credit for every one hour taught.
7. A person having successfully completed the education requirements approved by the
nationwide mortgage licensing system and registry in subsection 1 for any state shall
be accepted as credit toward completion of continuing education requirements in North
Dakota.
8. A licensed mortgage loan originator who subsequently becomes unlicensed must
complete the continuing education requirements for the last year in which the license
was held prior to issuance of a new or renewed license.
9. A person meeting the requirements of subdivisions a and c of subsection 1 of section
13-10-08 may make up any deficiency in continuing education as established by rule
or regulation of the commissioner.