Nevada Adopts Uniform State Test and Exempts Loan Processors and Underwriters from MLO Licensure


Another state agency has announced that it will be adopting the new national MLO test with the Uniform State Content. The Nevada Department of Business and Industry will adopt the test effective January 1, 2014. With this announcement, a total of 32 state agencies have adopted the new test and will no longer require a separate state-specific test component as a prerequisite for MLO licensure.

Nevada also has amended its MLO licensing statute to explicitly exempt loan processors and underwriters from the definition of “residential mortgage loan originator.” Accordingly, a loan processor or underwriter who acts as an employee at the direction of and subject to the supervision and instruction of a licensed or exempt mortgage broker is exempt from MLO licensure. This amendment is effective immediately.

Oregon Amends Mortgage Licensing Exemptions

Oregon recently amended its mortgage licensing statute to remove certain exemptions. Previously, subsidiaries and affiliates of financial holding companies, bank hold companies, and savings and loan holding companies were exempt from mortgage licensure. However, Oregon has recently removed these exemptions. This means that any such entities that were previously exempt must now obtain licensure if not otherwise exempt. This amendment is effective January 1, 2014.

Oregon also recently amended its mortgage loan originator licensing statute to exempt individuals who, as a seller during any 12-month period, offer or negotiate terms for not more than three residential mortgage loans that are secured by a dwelling that did not serve as that person's residence. To claim this exemption, an individual cannot at any time hold more than eight residential mortgage loans. Otherwise, that person will need to obtain an Oregon MLO license. This amendment is effective immediately with an operative date of September 3, 2013.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Written by:


Ballard Spahr LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.