TopMortgage Compliance Update (1)

January 23, 2012


NMLS: MLO Testing Handbook - 2012

Banging Head Let us help!
Isn't it time to bring in the professionals? 
Contact Us-1-Beveled-160

Website Forums


CFPB Forum-CC-1  

Dodd-Frank Forum-CC-1  

OCC News Forum-CC-(134x134)  

NMLS Users Forum-CC-1  

Mortgage Compliance Forum-Main  

FHA Forum-CC-1  

Veterans Mortgage Forum-Main  


About Us-Website-LCG(160x27)-1
Contact Us-Website-LCG(160x27)-1
The NMLS has recently updated its MLO Testing Handbook, which is a detailed guide for the entire testing process (i.e., creating an enrollment, scheduling a testing appointment, testing center information, and so forth).

The S.A.F.E. Act's Mortgage Loan Originator Test (SAFE MLO Test) is comprised of two parts: a National Component and a State Component. In order to enroll for a test component, the MLO (Mortgage Loan Originator) must establish an account in NMLS.

Many state agencies require a passing score on both the National and State Component, prior to the MLO submitting an application through NMLS.

The MLO will receive preliminary test results (pass or fail) before leaving the testing center. Within 72 hours of taking a test, the MLO receives an email stating the official test results are available to view in NMLS.

If you do not pass a component of the test, there is a waiting period between test retakes. We previously provided information about the NMLS retake policy HERE.

In This Newsletter-1Back
The National Component of the SAFE MLO Test must be taken by all state licensed MLOs.
 State ComponentStateComponent
The State Component of the SAFE MLO Test must be taken by for each jurisdiction in which an MLO holds a license.

MLOs seeking licenses in multiple jurisdictions must pass the State specific test component for each jurisdiction in which they wish to get licensed.
Federally registered MLOs are not required to take either the National Component or the State Component of the SAFE MLO Test.
Resource Library-1
An overview of what will be covered on each test component, the number of questions, how each test is weighted and corresponding reference lists.
Resource Library-1
National and State list of test components and the effective date for each (if applicable).
 Cancellation PolicyCancellation
The NMLS cancellation policy requires the MLO to cancel or reschedule an exam by no later than 12:00PM local time two (2) business days (Monday-Friday) prior to the test appointment. Failure to follow the cancellation and/or reschedule policy or a failure to show up for a scheduled test results in the test enrollment window being closed.

The MLO must then request and pay for a new enrollment window in NMLS prior to scheduling a new test appointment.
 Retake PolicyRetake
Resource Library-1
The SAFE MLO Test may be taken three (3) times before the MLO is required to sit out a 180-day wait period.

The MLO must request and pay for a separate test enrollment for each attempt to pass a national or state test. (The MLO is subject to a waiting period of thirty (30) calendar days from the previous test date prior to retaking the test.)

After every third failed test, the MLO is subject to a waiting period of one hundred eighty (180) calendar days before being permitted to retake the test.
  Professional AssistanceLCG 
Contact Us-2

Law Library Image
Click for Library
MLO Testing Handbook - 2012

Test Component Effective Dates

Retake Policy
Lenders Compliance Group is the first full-service, mortgage risk management firm in the country, specializing exclusively in mortgage compliance and offering a full suite of hands-on and automated services in residential mortgage banking.

Pioneers in outsourcing solutions for mortgage compliance.

Professional guidance and support to financial institutions in all areas of residential mortgage compliance, including the following:

Mortgage Compliance
Legal and Regulatory Compliance
FHA & Banking Examinations
Loan Originator Compensation
Statutory Licensing
Licensing Compliance
Information Technology & Security
Quality Control
Prefunding Audits
Retail, Wholesale, and Correspondent Lending
Business Development
Loss Mitigation Strategies
Forensic Mortgage Services
Sarbanes-Oxley Compliance (Part 404)
Audit and Due Diligence Reviews
Regulatory and Sales Training
Portfolio Risk Management
Credit Risk Management
Loan Analytics Audits
Compliance Audits
Due Diligence Reviews
Audit and Examination Preparation
GSE Applications
Ginnie Mae Applications

This communication is sent to our valued clients and colleagues, who regularly receive our Mortgage Compliance Updates, Compliance Alerts, Commentaries, and related publications.

These publications are free to subscribers. Information contained herein is not intended to be and is not a source of legal advice.

� 2006-2012 Lenders Compliance Group, Inc. All Rights Reserved.