Test Expiration Policy & Frequently Asked Questions

5 Year Test Expiration Policy

Section 1505(d) of the SAFE Mortgage Licensing Act states,

“…[a] state licensed loan originator who fails to maintain a valid license for a period of 5 years or longer shall retake the test, not taking into account any time during which such individual is a registered loan originator.”

Therefore, if mortgage loan originators leave the mortgage industry, or pass the SAFE MLO Test but don’t obtain a license or active federal registration, for a period of five consecutive years, their previously passed test results will expire, and they will be required to retest in order to obtain licensure.

In order to prevent test results from expiring, MLOs must obtain a valid license, which is defined as an approved, renewable license or active federal registration before five consecutive years have passed.

FAQ

Will my test result expire?
Answer: Yes, but only if you leave the mortgage industry for five consecutive years. Passed test results will only expire if an individual:
  • Fails to obtain or maintain a valid license in any state for a period of five or more consecutive years
  • Fails to maintain an active federal registration for a period of five or more consecutive years
Will I be notified that my test result is going to expire?
Answer: Yes. NMLS will send notifications to individuals and companies with access to those individuals 180, 60 and 30 days before the test results expire.
I received notification that my SAFE MLO Test is set to expire on August 1, 2022. If I submit my license application by August 1, 2022, will my test still expire?
Answer: Yes. Submitting a license application is NOT enough to prevent expiration; the application must be APPROVED before the test expiration clock will reset.
Can NMLS or a state regulator override or reinstate an expired test?
Answer: No. Neither NMLS nor state regulators have the authority to override the SAFE Act and reinstate expired test results.
My test result expired. What do I do now?
Answer: You would have to retake the test or tests that have expired if you want to meet the state testing requirements for licensure. Go to NMLS.org/Testing
Scenario: I passed the SAFE MLO test December 1, 2021, but never obtained a license. When would my test result expire?
Answer: Since you failed to obtain a license for five consecutive years, your passed test result would expire on or around December 1, 2026.
Scenario: I passed the SAFE MLO test on October 1, 2021 and obtained a state license shortly thereafter. My state license was terminated on December 1, 2021. When would my test results expire?
Answer: Since you failed to maintain an active license or active registration for five consecutive years after your license was terminated, your test results would expire on or around December 1, 2026.
Scenario: I passed the National Test and obtained a license in August 2021, but left the industry in December of that year. By December of 2026, I will have been out of the industry for five years. However, I had an active federal registration for one month in January 2024. When would my test expire?
Answer: Since you held an active federal registration in 2024, your test would not expire until (at least) January 2029.