WASHINGTON (5/30/13)--States may use the Uniform State Test, developed by the Nationwide Mortgage Licensing System and Registry, as part of a qualified written test under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act), according to guidance issued Wednesday by the Consumer Financial Protection Bureau.
The bureau said it was issuing the guidance in response to questions about a section of the SAFE Act that requires state-licensed mortgage loan originators to pass a "qualified written test." The act states the written test must be developed by the NMLSR.
A Uniform State Test qualifies under the SAFE Act if it includes questions covering all required areas. Those area include:
Federal law and regulation pertaining to mortgage origination;
State law and regulation pertaining to mortgage origination; and,
Federal and state law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues.
"Presenting test questions through a UST rather than a separate state test component would not preclude the test from being a qualified test under the SAFE Act, so long as all the requirements for a qualified test are satisfied," the CFPB wrote.
with any additional questions.