§ 19-14.10-8 - Testing of loan originators.
SECTION 19-14.10-8
§ 19-14.10-8 Testing of loan originators.– (a) In order to meet the written test requirement referred to in this chapter,an individual shall pass, in accordance with the standards established underthis subsection, a qualified written test developed by the nationwide mortgagelicensing system and registry and administered by a test provider approved bythe nationwide mortgage licensing system and registry based upon reasonablestandards.
(b) A written test shall not be treated as a qualifiedwritten test for purposes of this section unless the test adequately measuresthe applicant's knowledge and comprehension in appropriate subject areas,including:
(1) Ethics;
(2) Federal law and regulation pertaining to mortgageorigination;
(3) State law and regulation pertaining to mortgageorigination;
(4) Federal and State law and regulation, includinginstruction on fraud, consumer protection, the nontraditional mortgagemarketplace, and fair lending issues.
(c) Nothing in this section shall prohibit a test providerapproved by the nationwide mortgage licensing system and registry fromproviding a test at the location of the employer of the applicant or thelocation of any subsidiary or affiliate of the employer of the applicant, orthe location of any entity with which the applicant holds an exclusivearrangement to conduct the business of a mortgage loan originator.
(d) An individual shall not be considered to have passed aqualified written test unless the individual achieves a test score of not lessthan seventy-five percent (75%) correct answers to questions.
(2) An individual may retake a test three (3) consecutivetimes with each consecutive taking occurring at least thirty (30) days afterthe preceding test.
(3) After failing three (3) consecutive tests, an individualshall wait at least six (6) months before taking the test again.
(4) A licensed mortgage loan originator who fails to maintaina 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 registeredmortgage loan originator.