TITLE 19

Financial institutions

CHAPTER 19-14.10

An Act Adopting the Federal Secure and Fair Enforcement for Mortgage Licensing

Act of 2009

SECTION 19-14.10-8



   § 19-14.10-8  Testing of loan originators.

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(a) In order to meet the written test requirement referred to in this chapter,

an individual shall pass, in accordance with the standards established under

this subsection, 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 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, or

the location of any entity with which the applicant holds an exclusive

arrangement to conduct the business of a mortgage loan originator.



   (d)(1) An individual shall not be considered to have passed a

qualified written test unless the individual achieves a test score of not less

than seventy-five percent (75%) correct answers to questions.



   (2) An individual may retake a test three (3) consecutive

times with each consecutive taking occurring at least thirty (30) days after

the preceding test.



   (3) After failing three (3) consecutive tests, an individual

shall wait at least six (6) months before taking the test again.



   (4) A licensed mortgage loan originator who fails to maintain

a valid license for a period of five (5) years or longer shall retake the test,

not taking into account any time during which such individual is a registered

mortgage loan originator.



History of Section.

(P.L. 2009, ch. 148, § 3; P.L. 2009, ch. 160, § 3.)