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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

073

:
LICENSED LENDERS











 

§

2204b. Testing of mortgage loan originators

(a) In order to

meet the written test requirement referred to in subdivision 2204(a)(7) of this

chapter, an individual applying for a mortgage loan originator license shall

pass, in accordance with the standards established under this section, a

qualified written test developed by the Nationwide Mortgage Licensing System

and Registry and administered by a test provider approved by the Nationwide

Mortgage Licensing System and Registry based upon reasonable standards.

(b) A written

test shall not be treated as a qualified written test for purposes of

subsection (a) of this section unless the test adequately measures the

applicant's knowledge and comprehension in appropriate subject areas,

including:

(1) Ethics;

(2) Federal law

and regulation pertaining to mortgage origination;

(3) State law

and regulation pertaining to mortgage origination;

(4) Federal and

State law and regulation, including instruction on fraud, consumer protection,

the nontraditional mortgage marketplace, and fair lending issues.

(c) Nothing in

this section shall prohibit a test provider approved by the Nationwide Mortgage

Licensing System and Registry from providing a test at the location of the

employer of the applicant or the location of any subsidiary or affiliate of the

employer of the applicant.

(d) An

individual shall not be considered to have passed a qualified written test

unless the individual achieves a test score of not less than 75 percent correct

answers to questions.

(e) An individual

may take a test three consecutive times, with each consecutive test occurring

at least 30 days after the preceding test. After failing three consecutive

tests, an individual shall wait at least six months before taking the test

again.

(f) A licensed

mortgage loan originator who fails to maintain a valid license for a period of

five years or longer shall retake the test, not taking into account any time

during which such individual is a registered mortgage loan originator. (Added

2009, No. 29, § 1; amended 2011, No. 85 (Adj. Sess.), § 4, eff. April 20,

2012.)