NMLS: MLO Test - Retake Policy

On June 30, 2011 the US Department of Housing and Urban Development (HUD) published its final rule (the Rule) about the implementation of the SAFE Act.

The Rule changes the number of times a candidate may take a SAFE MLO Test Component before being required to sit out the 180-day wait period.

The issuance contains important information for account administrators and state licensed mortgage loan originators regarding how the new retake policy will be implemented and how it may impact current or prospective loan officers. 

Effective: August 29, 2011

The HUD Rule

 

The HUD Rule states that any person who takes the National or a State Component of the SAFE MLO Test must sit out the 180-day wait period after that person fails a test component three (3) times.

Currently candidates may fail a test component four (4) times before being required to sit out the 180-day wait period.

When will the new policy be implemented?

 

Anyone who enrolls to take a test on or after August 29, 2011 will be subject to the new retake rule.

Persons who enroll to take tests prior to August 29, 2011 will be governed by the current rule.

Therefore:

Prior to August 29, 2011: candidates may fail a test component four (4) times before being required to sit out the 180-day wait period.

On or after August 29, 2011: candidates may fail a test component three (3) times before being required to sit out the 180-day wait period.

Impact on Applicants

 

Candidates who have two (2) or more test failures for any single test should assess their testing plans between now and August 28, 2011.

Those candidates may want to enroll to take their next test attempts prior to the current 4-fail rule expiring on August 28, 2011.

As long as applicants have opened their fourth enrollment windows no later than August 28, 2011, they will be allowed to schedule and take their fourth tests anytime after their 30-day wait periods even if they extend past August 28, 2011.

Administrators

 

Administrators should provide notification concerning these testing plan requirements to applicants prior to August 29, 2011, and in particular to those applicants who currently have more than two (2) failures. 

LIBRARY

 

Nationwide Mortgage Licensing System & Registry

HUD Final Rule Changes Retake Policy for SAFE MLO Tests

August 2, 2011