Wednesday, September 18, 2013
The Department of Insurance, Securities and Banking will join 35 states in making licensing more convenient for mortgage loan originators, known as MLOs, by adopting the new SAFE MLO National Test Component with Uniform State Content on October 1, 2013.
Until now mortgage loan originators had to pass separate state and federal tests to obtain a license under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, or the SAFE Act. The new National Test Component with Uniform State Content replaces these two test components with a single test that satisfies District and federal requirements.
Under the new test, MLOs seeking to hold licenses in multiple states no longer need to pass separate state tests to seek a license in each of the 35 participating states and the District.
“The new test makes the licensing process more efficient,” said William P. White, commissioner of the Department of Insurance, Securities and Baking. “This is one more way the department is streamlining the regulatory process while continuing to ensure the safety and soundness of entities operating in the District as well as protecting our residents.”