Illinois Begins Using Uniform Mortgage Test

WASHINGTON, D.C. – (RealEstateRama) — The Conference of State Bank Supervisors (CSBS) announced today that the Illinois Department of Financial and Professional Regulation (IDPFR or the Department) began using the National SAFE Mortgage Loan Originator (MLO) Test with Uniform State Content starting today, bringing the total number of state agencies that use the test to 52.

“With our adoption of the new SAFE MLO test, MLOs seeking to hold licenses in multiple states will no longer be required to pass the state-specific component for each state in which they wish to do business”, said Kerri A. Doll, Division of Banking Director. “This change makes the license process more efficient for MLOs seeking a license in the state of Illinois”.

Passage of the SAFE Mortgage Licensing Act of 2008 requires all mortgage loan originators (MLOs) to be registered or state-licensed through the Nationwide Multistate Licensing and Registry (NMLS).

The test, which was first made available on April 1, 2013, combines both the national and state testing requirements of the SAFE Act. Previously, IL licensees had to take two tests: one national and one state. The new test replaces the separate, state-specific tests. A license applicant who passes the National SAFE MLO Test with Uniform State Content will not need to take any additional state-specific tests to hold a license within participating states.

“This is just one more way IDFPR is seeking to streamline supervisory processes, while continuing to ensure the safety and soundness of entities operating within our state and protecting our citizens”, said Secretary Bryan A. Schneider. “By providing a more effective regulatory experience, we foster the creation of a regulatory environment conducive to strong economic growth and opportunity.”

“Illinois’ adoption of the Uniform Standard Test brings states one step closer single national testing standard for MLOs, increasing the efficiency and effectiveness of the state supervisory system,” said Robert J. Entringer, Commissioner of the North Dakota Department of Financial Institutions and Chairman of the State Regulatory Registry LLC. “Testing requirements for MLOs are now uniform in 47 states and territories.”

Twenty state agencies initially adopted the National SAFE MLO test in April 2013. An additional 31 state agencies adopted the test between July 2013 and April 2016.

Since its release on April 1, 2013, more than 82,000 MLOs have taken the National SAFE MLO test with Uniform State Content.

More information on the National SAFE MLO test with Uniform State Content is available here.

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Media Contacts:
Matt Longacre, Manager, Communications, mlongacre (at) csbs (dot) org or 202.803.8091

The Conference of State Bank Supervisors (CSBS) is the nationwide organization of banking regulators from all 50 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands. State banking regulators supervise approximately 4,850 state‐chartered financial institutions. Further, most state banking departments also regulate a variety of non-bank financial services providers, including mortgage lenders. For more than a century, CSBS has given state supervisors a national forum to coordinate supervision of their regulated entities and to develop regulatory policy. CSBS also provides training to state banking and financial regulators and represents its members before Congress and the federal financial regulatory agencies.

The Nationwide Mortgage Licensing System & Registry is owned and operated by State Regulatory Registry LLC. CSBS in cooperation with the American Association of Residential Mortgage Regulators (AARMR) established the State Regulatory Registry LLC (SRR) on September 29, 2006. A limited-liability company, SRR is to develop and operate nationwide systems for state regulators in the financial services industry. Such systems are intended to enhance state’s ability to protect consumers; improve supervision and enforcement of licensed entities; and streamline licensing and other processes for state agencies and the industry through the use of modern technology and centralizing redundant state agency operations.

NMLS is a web-based system that allows state-licensed mortgage lenders, mortgage brokers, and loan officers to apply for, amend, update or renew a license online for all states using a single set of uniform applications. NMLS began operation on January 2, 2008. Further, passage of the SAFE Mortgage Licensing Act of 2008 requires all mortgage loan originators (MLOs) to be registered or state-licensed through NMLS. MLOs employed by insured depository institutions and subsidiaries are to be registered, and all other MLOs are to be licensed by state mortgage regulators. Federal depository regulators have indicated that MLOs could begin registering on NMLS in January 2011.

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