LOAN ORIGINATORS: IDFPR RESCINDS PROPOSED EDUCATION RULE, ADOPTS UST

Breaking_NewsIn a surprise move, the IDFPR Division of Banking has rescinded the Mortgage Loan Originator (MLO) education rule it proposed in late April, which called for an additional three hours of Illinois-specific pre- license education and an additional three hours of Illinois-specific continuing education annually. The Division of Banking also confirmed plans to move ahead with adopting the Uniform State Test (UST) for loan originator license applicants in Illinois, effective June 1, 2016. For those unfamiliar, the UST covers general state-level regulatory information applicable in most states and is included as a part of the National Component of the SAFE exam that all potential licensees must pass.

Illinois State Test Component Removed Effective 6/1/2016

WHAT DOES THIS MEAN FOR YOU?

  • If you are currently licensed as a mortgage loan originator in Illinois, this has no impact on you. You may continue to originate as you have been doing.
  • If you are not yet licensed in Illinois but have already passed BOTH the National Component AND the Illinois State components of the SAFE exam, your Illinois license application will not be affected by this change. Whether or not you have actually filed the application, you do not have any additional requirements and may apply for licensure at any time if you have not already done so.
  • If you are not yet licensed in Illinois AND you have passed the National exam with UST (meaning you enrolled for and passed the National SAFE exam AFTER April 1, 2013), you will be able to apply for an Illinois MLO license on or after 6/1/2016 (do not apply before this date). This situation also applies to anyone who enrolled in and passed the STAND-ALONE UST, which was available in 2013 and early 2014.
  • If you are not yet licensed in Illinois AND you have not passed the Illinois exam AND you enrolled for and passed the National SAFE exam WITHOUT UST (you enrolled for the National exam BEFORE April 1, 2013), you have two options:

    Option 1: Enroll in the Illinois State Component exam BEFORE June 1st, 2016 and pass that exam on your first take OR;

    Option 2: Enroll for and pass the current version of the National exam with UST. Yes, this will require you to re-take the full national component, as there is no longer a stand-alone UST option.

If you have any questions about which exam(s) you have taken and passed, you can find that information by logging into the NMLS (on the State side), clicking the “COMPOSITE VIEW” tab at the top right, then clicking “View Individual” at the top center and finally clicking “Testing Information” on the left navigation bar. You can also contact the NMLS Call Center at 855-665-7123 with questions about your status.

Refer to the IDFPR press release announcing this change.


Real Estate Institute has helped thousands of LOs pass the SAFE exams with Prep-to-Pass. Our recently updated test prep program includes the most recent NMLS content outline revisions. Try sample practice tests for free at our website.

Why Loan Originators Will Regret Missing the NMLS Uniform State Test Deadline

5 to 12 clockIf you are like most mortgage loan originators, you’ve questioned the value of taking the Stand-Alone Uniform State Test (UST). You’re probably thinking, “I originate in only one state and have no plans to expand. Why bother?” Based on the consequences, you should seriously reconsider.

It does make sense that you’d have these thoughts.  Not long ago, over 80% of the state-licensed MLOs had only one license. It just didn’t seem worth it to take the time to prepare for the test and pay more fees.

However, just because you only originate in one state doesn’t mean you always will. Here are the questions that you need to ask yourself:

–       What if something happens and my plans change?

–       What if I take a new position with a company that originates in multiple states?

–       What if I move? (Most people who live in Chicago are asking this question after 44 days of snow this winter!)

–       What if I decide not to take the Uniform State Test?

There are harsh consequences if you don’t register for the Stand-Alone UST before the deadline. Starting April 1, 2014, if you want to become licensed in any state that has adopted the UST, you won’t have a choice. You will be required to take a new National Test Component. This time, the National test will have 125 questions. Based on the failure rates, it wasn’t easy the first time and it isn’t any easier now. The safer play is to take the Stand-Alone UST. It’s only 25 questions. With some test prep, you should ace it and have no regrets.

Time is running out. All you need to do is open a test window by March 31, 2014. You don’t have to take the test by this date. You have up to 180 days after you open the test window. Don’t miss this opportunity. The reality is that 39 state regulators have already adopted the UST, and more will follow suit. If there’s a chance that you might do business in another state, register for the test.

Once you pass, you can relax and let the chips fall where they may. If you move or want to expand your business, you’ll be one step closer to satisfying that state’s requirements.

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Real Estate Institute has helped thousands of licensees pass their exams. Click here to learn more about Stand-Alone UST test prep.  A new National Test Component prep program is also available. It has been updated based on the 2014 NMLS Content Outline and includes the 2014 rule changes. Try our free online practice tests.

Click here to register for the Stand-Alone UST with the NMLS. You must schedule your test with Prometric.