Big question, I know – ProSchools keeps getting it more and more. You will be able to sign-up to take the NMLS Exam (mandated by the SAFE Act) administered by Pearson Vue in 12 states starting July 1. Exams won’t be ready until July 31 and you’ll have between six months and 18 months to pass these loan originator licensing exams – depending on the state.
For current loan originators, some states say you must pass by January 1, 2010, while others are mid-2010 or by the end of 2010. This first group of states for the NMLS or “SAFE Act” loan originator license exam for loan originators includes: Arizona, Idaho, Iowa, Louisiana, Massachusetts, Michigan, New Hampshire, North Carolina, Pennsylvania, Rhode Island, Vermont, and Washington.
But, I know, what you really want to know is “what’s going to be on that darn test?”. Well, no one knows yet for sure. My opinion is the NMLS testing and education effort has so far been very well run. Those guys have got a tough job and they are doing their best to involve as many of the stakeholder as they can. You will need to pass, at least, two exams. I say “at least” because you will need to pass the National exam PLUS a State exam for each state in which you will do business. One important thing to be aware of, if you’ve already taken a state-specific exam in a particular state, it is possible that the state exam requirement may be waived for you. You’ll need to check with NMLS and/or the state regulatory agency to see how the state is handling this.
There are 100 questions on the National test and 50 questions on the State test. In both cases, there are 10 unscored questions – so, you’ll be graded on 90 and 40 respectively. These are two completely separate tests. You may schedule them at the same time or on different days.
The National exam will break out as follows:
- Federal Mortgage-related laws = 35 questions
- General mortgage knowledge = 25 questions
- Mortgage loan origination activity = 25 questions
- Ethics = 15 questions
The State exams will differ some from state to state but, generally speaking, they’ll break out as follows:
- Local regulatory agency = 2-3 questions
- State law and regulation definitions = 5 questions
- License law and regulation = 10 questions
- Compliance = 25 questions
- Disciplinary action = 5 questions
- Unique state laws and policies in the particular state = 2-3 questions
Keep an eye on upcoming blog posts as well as ProSchools’ website. I’ll go over each of these topics on the national and state exam and tell you what kind of specifics you can expect in terms of sub-topics and questions. Also, I’ll review your options if you fail the test and include some sample questions. I’ll also throw in some tips on preparing for the exam. You can see outlines of the exams at: http://mortgage.nationwidelicensingsystem.org/profreq/testing/Pages/default.aspx