CFPB issues guidance on Uniform State Test for mortgage loan originators

Ballard Spahr LLP

The CFPB has issued guidance that provides states may use the Uniform State Test (UST) developed by the Nationwide Mortgage Licensing System and Registry (NMLSR) to satisfy the testing requirement of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act).

The SAFE Act requires state-licensed mortgage loan originators to pass a “qualified written test” developed by the NMLSR. In addition to questions about other subjects, the test must include questions covering state laws and regulations. The CFPB’s guidance confirms that this requirement can be satisfied through a UST rather than a separate test for each state covering the state’s particular laws and regulations combined with a National Test Component developed by the NMLSR. According to the CFPB, a state can use a UST if “it adequately tests required laws and regulations.”

 As we have reported, 31 state regulators have already adopted (or announced that they are adopting) the UST. Although these agencies will no longer require a state specific test component as a prerequisite for mortgage loan originator licensure, many states will continue to require state specific education. It is expected that eventually nearly every state will adopt the UST.

Written by:

Ballard Spahr LLP

Ballard Spahr LLP on:

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:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.