Alert May 28, 2013

CFPB Issues Guidance Bulletin on Qualified Written Test under the SAFE Act

The CFPB issued a guidance bulletin in response to questions about whether states may use the uniform state test developed by the Nationwide Mortgage Licensing System and Registry as part of a qualified written test under the SAFE Act. The SAFE Act requires state-licensed mortgage loan originators to pass a qualified written test, which must be developed by the NMLSR and must adequately measure knowledge and comprehension of certain subject areas (including state laws and regulations). The guidance clarifies that this requirement may be met through the use of a compliant uniform state test or a separate test for each state covering particular laws and regulations of that state, in addition to a national test component developed by the NMLSR, so long as all of the requirements for qualified test are satisfied.