Uniform State Licensing Test Goes Live in 20 States

The long-awaited goal of simplifying the testing process for mortgage loan originators seeking multiple state licenses took a big step forward on April 1.

Now 20 states will be using a new uniform state test. It means a loan originator that takes the test in Massachusetts won’t have to take a second, state-specific test when applying for a license in Michigan.

The states of Delaware, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Hampshire, North Carolina, North Dakota, Pennsylvania, Rhode Island, South Dakota, Utah, Virginia, Washington and Wisconsin implemented the uniform state test on April 1, according to the Conference of State Bank Supervisors.

Alaska, Kansas, Nebraska, Tennessee and Vermont will remove their requirement for a state-specific test on July 1. Texas will start using the uniform state test in October.

“The development and adoption of the new National SAFE MLO Test with a uniform state test component streamlines the license process for MLOs seeking licenses in multiple states,” according North Dakota financial institutions commissioner Bob Entringer.

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 established education, testing and state licensing requirements for nonbank loan originators.