Agencies
Services
News Release – Wednesday, May 4, 2016
Illinois Regulator to Adopt New SAFE Mortgage Loan Originator Test
UPDATE 6/1/2016
The Illinois Department of Financial and Professional Regulation began using the National SAFE Mortgage Loan Originator (MLO) Test with Uniform State Content starting today.
UST Adopted; No Additional Continuing Education
The Illinois Department of Financial and Professional Regulation (IDFPR) Division of Banking today announced that it will adopt the new SAFE Mortgage Loan Originator (MLO) National Test Component with Uniform State Content on June 1, 2016. IDFPR is one of 52 state agencies that have adopted the test. Additional states are eventually expected to adopt the new SAFE MLO National Test Component with Uniform State Content.
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act) requires MLOs to pass the SAFE MLO test before they can be licensed through the Nationwide Mortgage Licensing System and Registry (NMLS). The new National Test Component with Uniform State Content replaces two test components – the National and a State Component – which applicants had been required to pass. This new test will allow MLOs seeking a license with IDFPR to take a single test component and satisfy the SAFE Act and Illinois testing requirements.
“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”.
Under the new National Test Component with Uniform State Content, a license applicant who passes the test will not need to take any additional state-specific tests to seek a license with the 52 state agencies that have adopted the test. IDFPR has withdrawn the proposed rule to require pre-licensure and continuing education. MLOs are still required to comply with Illinois state law.
“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 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.”
FOR IMMEDIATE RELEASE
