MARYLAND EXTENDS DEADLINE FOR COMPLETING MORTGAGE LOAN ORIGINATOR TEST REQUIREMENT FOR NEW APPLICANTS
As previously announced, the NMLS-approved SAFE mortgage loan originator test components – both the national and the Maryland components – are now available for scheduling and completion. All Maryland Mortgage Loan Originators must pass the test as part of the requirements for licensure according to the schedule set forth below.
The purpose of the new testing requirement is to ensure an enhanced level of professionalism in the industry. Therefore, the tests have been designed to establish that licensees have acquired appropriate levels of knowledge and competence in their field. As these tests can be expected to be rigorous, it is recommended that licensees, at minimum, read the federal and state laws that govern these topics. The relevant Maryland laws and regulations may be found on the
website of the Office of the Commissioner of Financial Regulation (the “Commissioner”).
The Commissioner is committed to working cooperatively with the mortgage industry to implement these new requirements and complete the transition to NMLS. To accomplish that goal, the Commissioner has implemented a transition plan with certain extended deadlines.
As the test has only recently become available, the Commissioner has determined that it is necessary to extend the deadline by which new licensees must pass the test.
Revised Testing Schedule
- New Maryland Mortgage Loan Originator License Applicants – The Office previously announced that until January 1, 2010, it would approve licenses on a conditional basis subject to the applicant passing the test at a later date. The new schedule that follows supersedes the foregoing and EXTENDS THE CONDITIONAL APPROVAL PROCESS BY ONE MONTH AND REVISES THE DEADLINE FOR PASSING THE TEST.
- NEW APPLICANTS – CONDITIONAL APPROVAL NOW AVAILABLE THROUGH JANUARY 31, 2010
- THROUGH JANUARY 31, 2010, THE COMMISSIONER WILL APPROVE A NEW LICENSE ON A CONDITIONAL BASIS TO A QUALIFIED APPLICANT, SUBJECT TO THE APPLICANT LATER PASSING THE TEST, PROVIDED THE APPLICATION IS OTHERWISE COMPLETE PRIOR TO JANUARY 31, 2010.
- LICENSEES RECEIVING THIS CONDITIONAL APPROVAL MUST PASS THE TEST BY JULY 31, 2010.
- NEW APPLICANTS – CONDITIONAL APPROVAL NO LONGER AVAILABLE ON OR AFTER FEBRUARY 1, 2010
- STARTING FEBRUARY 1, 2010, NEW APPLICANTS MUST PASS THE TEST (BOTH THE NATIONAL & MARYLAND COMPONENTS) AND OTHERWISE COMPLETE THE APPLICATION TO QUALIFY FOR APPROVAL AND ISSUANCE OF A LICENSE.
- LICENSEES WITH INTERIM STATUS - Applicants who were exempt from licensure prior to July 1, 2009 and who applied for a new Mortgage Loan Originator License with Interim status also have until July 31, 2010 to pass the test. Please note that it is no longer possible to apply for licensure with an interim status as the deadline for application has passed.
- AFFILIATED INSURANCE PRODUCER – MORTGAGE LOAN ORIGINATORS – Applicants for this license are NEW APPLICANTS and follow the schedule detailed above.
- Renewing Maryland Mortgage Loan Originator Licensees – Licensees who were licensed prior to July 1, 2009 are transitioning to NMLS in conjunction with the renewal of their license and have until December 31, 2010 to complete the testing requirement. These licensees MUST pass both the national and Maryland components of the test in order to renew at December 31, 2010.
PLEASE ALLOW SUFFICIENT TIME TO TAKE AND PASS THE TEST. Individuals are allowed four opportunities to take each of the pre-licensing test components (the initial test and three additional opportunities provided at 30-day intervals). If a mortgage loan originator (including an Affiliated Insurance Producer – Mortgage Loan Originator) does not pass any of the test components after all four opportunities, the Mortgage Licensing Act and the federal SAFE Act require that the individual must wait for 6 months to take the test components again.
Individuals who fail to pass the test by the required dates will not be able to continue operating as a Maryland mortgage loan originator thereafter.
You may view the available test component content outlines and detailed information about enrolling and scheduling a test session by visiting the testing page of the NMLS Resource Center.
If you have questions about Maryland licensure education requirements, please contact George Kinsel, Director, Compliance Examinations, Office of the Commissioner of Financial Regulation, 410-230-6086, or if you have questions about how to enroll and schedule a test component in NMLS, please call the NMLS Call Center, 240-386-4444.
For other Maryland licensure requirement questions, please contact Anne E. Ecker, Director of Licensing, at 410-230-6102 or Keisha Whitehall Wolfe, Supervisor of Licensing at 410-230-6362.