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So, what if I flunk the NMLS loan originator license exam?

How’s that for a blunt question?   As I promised awhile back, I’m having our Course Consultants here at ProSchools keep track of interesting questions they receive about the upcoming NMLS license exams which are part of the  S.A.F.E. Mortgage License Act.  Remember, all mortgage loan originators (MLOs) will need to pass a national license exam, as well as a state exam for each state they wish to be licensed in. 

As most of you know, the first group of states will start actual testing in August and mortgage loan originators and those seeking a license in those states can now log into the NMLS and register to take the exam. 

So, let’s say you don’t take these tests seriously and you show up for the exam thinking you are a little smarter than you actually are (be careful now!) and you flunk the exam.  You will likely have taken at least two exams (national and state).  [Note: I’ve heard that some states may waive the state exam, if you already have passed a state specific license exam previously but I have not seen any specifics on this yet.]

Here is the bottom line on re-takes:  There is a “waiting period” which is prescribed by the S.A.F.E. Mortgage License Act.  You must wait a period of at least thirty (30) calendar days from the previous test date prior to retaking an exam.  After the fourth failed test (advice: don’t flunk it four times), you’ll need to wait 180 days.  My advice is simple:  study hard and don’t flunk!

The table below comes from the MLO Testing Handbook produced by NMLS.

Test Attempt       Test Result         Retake Waiting Period
Initial                   Fail                    30 days
2nd                     Fail                    30 days
3rd                      Fail                    30 days
4th                      Fail                    180 days

(new retake cycle begins)

Initial                  Fail                     30 days

NOTE: The waiting period applies to each specific test. Failing one test, such as the National Component, does not impose a waiting period on a different test, such as a Unique State Component.

CANDIDATES WHO PASS A TEST COMPONENT ARE NOT PERMITTED TO RETAKE THE SAME TEST COMPONENT AGAIN.

Posted: 7/30/2009 11:51:58 AM by Deanne Gillock | with 0 comments


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