The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requires that state-licensed loan originators pass a qualified written test developed by the Nationwide Mortgage Licensing System (NMLS) and administered by an approved test provider. As required by the SAFE Act, the test is designed to adequately measure an individual's knowledge and comprehension in appropriate areas, to include:
a. Ethics;
b. Federal law and regulation pertaining to mortgage origination;
c. State law and regulation pertaining to mortgage origination;
d. Federal and State law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues.
The SAFE Test includes two components: a National Component and a Unique State Component. A Mortgage Loan Originator (MLO) wishing to satisfy the SAFE test requirements for licensure in any given state or jurisdiction, must pass each component with a test score of not less than 75 percent correct answers to questions. MLOs wishing to seek licensure in more than one state or jurisdiction, must pass the Unique State Component test in each of those states.
While the SAFE Act requires NMLS to develop the SAFE Mortgage Test, it is individual state law that determines when an MLO must take the SAFE Mortgage Test as a requirement for state licensure. NMLS provides information concerning the content of the SAFE Mortgage Test content and the process for completing it, but MLOs should refer to their state agency about the timing of the SAFE test requirement.