The Nationwide Mortgage Licensing System and Registry (NMLS) has announced that the Uniform State Test (UST) will be available for enrollment beginning 4/1/2013. As I mentioned in a previous blog post, the goal of the UST is to eliminate the need for Mortgage Loan Originators to take two tests to obtain a license under any state regulatory agency that adopts the UST program. Although we’ve known for a year now that the NMLS was planning this initiative to streamline the licensing process (and save states the time and money involved in maintaining their own individual tests), the details have just recently become available. Here are the critical ones you need to know:
WHICH STATE AGENCIES ARE PARTICIPATING IN THE UNIFORM STATE TEST PROGRAM?
As of this writing, the following state regulatory agencies have signed on to the UST program effective on the following dates.
State agencies allowing test enrollments beginning 4/1/2013:
|Indiana Department of Financial Institutions*
||Utah Department of Financial Institutions*
*NOTE: Indiana Secretary of State and Utah Department of Real Estate have not elected to participate in the UST program at this time. Licensees applying to these agencies will still be required to pass a State Component Test in order to become licensed.
Agencies allowing test enrollments beginning 7/1/2013:
The NMLS will add agencies to this list as they sign on to the UST program. An up-to-date list can be found by going to the NMLS Resource Center and following the links on the right-hand side of the page.
WHAT IF MY STATE AGENCY WAS NOT LISTED?
If you wish to become licensed by a state agency that has not adopted the UST, you must continue to take their State Specific Component Test. If you will be taking the National Compnent Test on or after 4/1/2013, your National Component Test will include the UST. However, the required State Specific Component Test (for a state agency that has not adopted the UST) will need to be taken separately in order to become licensed by that state agency.
HOW DO I ENROLL FOR THE UNIFORM STATE TEST, AND WHAT IS THE FORMAT?
There is no way to enroll for the Uniform State Test until 4/1/2013. Once that date has arrived, you will open a testing window by enrolling through the NMLS system as you would any other test. To my surprise, the NMLS did elect to offer the UST as a stand-alone test for those who have already passed the National Test Component. Enrollment for the stand-alone UST will only be available for the one-year period running 4/1/2013 – 3/31/2014. After that time, any individual who has not passed some version of the UST (either the stand-alone or the National Test Component with UST) will have to enroll for (and pass) the National Test Component with UST if they want to obtain a license from any state regulatory agency that has adopted the UST.
The cost to take just the UST (which will consist of 25 questions, all of which are scored) will be $33.00. The questions will NOT be state-specific, but rather will relate to topics that are fairly uniform across all states; many will be based off of the SAFE Act model state law created in 2008. The full text of that law in PDF format can be found here. If you’d like to look at the UST content outline from the NMLS, click this link.
WHAT IF I’VE ALREADY PASSED A STATE TEST IN ONE OF THE STATES LISTED?
You will continue to be able to do business as usual. You will not need to take the UST, unless you wish to obtain a license from one of the state agencies that have adopted the UST program after the exam becomes available.
WHAT IF I’M CURRENTLY SCHEDULED TO TAKE A TEST OR HAVE AN OPEN ENROLLMENT WINDOW?
If you’re currently scheduled to take a test, or have an open enrollment window to schedule a test, you will need to take the test as-scheduled and before the end of your enrollment window or you will lose the funds you have paid to open that enrollment window. Failure to show for a scheduled exam will also close the enrollment window. There is no way to switch an enrollment window from a State Specific Component Test to the UST once that enrollment window has been opened and during the time it remains open.
WHAT IF I NEED TO TAKE THE NATIONAL TEST COMPONENT?
After 4/1/2013, all NEW enrollments for the National Test Component will include the UST. The National Test Component with UST will consist of 125 questions, 115 of which will be scored. There will not be an option to take the National Test Component without the UST. The price for all National Test Component enrollment windows opened on or after 4/1/2013 will increase to $110.
All enrollment windows for the National Test Component opened prior to 4/1/2013 will be for the existing National exam and will not include the UST. The cost for this will remain at $92.
Until 4/1/2013, there will be no way to open an enrollment window for the National Test Component with UST. After 4/1/2013, there will be no way to open an enrollment window for the National Test Component without the UST. The existing National Test Component will be administered until the last enrollment window closes.
WHERE DO I FIND MORE INFORMATION?
All pertinent information relating to the UST can be found at the NMLS Resource Center under the TESTING tab. You can locate the UST Implementation Information page from there.