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Professional Requirements Frequently Asked Questions
The FAQ is organized by the following categories:
Testing | Education | Course Providers |
Background Check
Testing
See also the MLO Testing Handbook.
| Q. |
When will the National Component and Unique State
Components of the SAFE test be ready? Updated |
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A. The National Component of the test is scheduled
to be available on July 30, 2009. The Unique State Component for 11 States (AZ,
ID, IA, LA, MA, NH, NC, PA, RI, VT, WA) are also scheduled to be
available on July 30. Other Unique State Components are scheduled to
be available in accordance with each state’s SAFE Act
implementation schedule and will be announced on the Testing pages found
under the Professional Requirements section of the NMLS Resource
website. (6/26/09) |
| Q. |
How do I prepare and register to take either the
National Component or Unique State Component of the test?
Updated |
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A. The MLO handbook, which is available on Testing
Page of the NMLS Resource Center, has specific information on how to
register for both the National Component and the Unique State Component
of the test. (6/26/09) |
| Q. |
What is the cost associated with taking either the
National Component or the Unique State Component of the test?
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A. The fees associated with taking each component
of the test are posted on the NMLS Test Requirements page of the NMLS
Resource web site. (5/1/09) |
| Q. |
Do I need to take a course prior to taking one of
the tests? |
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A. No, you are not required to take a pre-licensure
or continuing education course prior to taking either the National
Component or the Unique State Component of the test.
However, a course is strongly encouraged as it will help prepare
you take and pass the test. Regardless of whether you choose to
complete a preparation course prior to taking a specific test, you are
still required to complete the 20 hours of pre-licensure education
and/or required to complete 8 hours of annual continuing education.
(5/1/09) |
| Q. |
Do I need to pass more than one Unique State
Component if I am licensed or wish to be licensed in more than one
state? Updated |
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A. Yes, state-licensed mortgage loan originators
are required to take the Unique State Component for each state in which
they are or seek to become licensed. (6/26/09) |
| Q. |
Do I need to pass the National Component of the test
more than once if I would like to be licensed in more than one
state? Updated |
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A. No, the National Component of the test need only
be passed once, unless an individual is unlicensed for a period of five
years or more. Additionally, once a candidate has passed any test
component, the candidate cannot retake that particular test component.
(6/19/09) |
| Q. |
Is it true I might not be required to take the
Unique
State Component of
the test? Updated |
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A.Mortgage loan originators who have
successfully passed a state required test that meets certain conditions
may be eligible to have their state tests certified. Loan originators
should check with their state mortgage regulator for more information.
However, nothing precludes any MLO from the requirement to take and
successfully pass the National Component of the SAFE test.
(6/26/09) |
| Q. |
If I work for a Commercial Bank do I need to
take the SAFE test? |
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A. If you work for an insured depository regulated
by OCC, OTS, FDIC, FED and NCUA or the Farm Credit Administration you
are not required to take the SAFE test. You still can and may want
to take the SAFE test in the event that you change employment and work
for a state-licensed lender or broker. (5/1/09) |
| Q. |
If I am a loan originator who wants to be
licensed in one state but lives in another, will I be able to take the
state test at a local testing location? For example, if I want to be
licensed in Arizona but live in Maryland, will I be able to take the
Arizona test locally? |
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A. Yes, an individual in Maryland will be able to
register for and visit a local test center to take the Arizona State
Component of the SAFE test. The National and all State Test Components
will be available at all test centers. For more information about the
enrollment process, please refer to the MLO Handbook.
(6/19/09) |
| Q. |
What is the length of the
test? |
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A. The National Component of the S.A.F.E. Mortgage
Loan Originator Test consists of a total of 100 test questions: 90 are
scored and 10 are not scored. The test time will be 150 minutes with an
additional 30 minutes for completing a tutorial and an optional
candidate survey. Each State-Specific Component of the S.A.F.E. Mortgage
Loan Originator Test consists of 45 to 55 scored test questions and an
additional 10 test questions are not scored. The exact number of scored
test questions for each state test is listed in the state's test content
outline. The test time will be 90 minutes with an additional 30 minutes
for completing a tutorial and an optional candidate survey.
(6/19/09) |
| Q. |
If I have several mortgage loan originators who
need to take the same test, can I schedule group testing
appointments? |
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A. Yes, if five or more MLOs need to take the same
test component, a company representative can use the bulk reservation
tools to schedule a group testing appointment. Please visit the Pearson
VUE or Prometric Websites for more information. (6/19/09) |
| Q. |
I've selected and paid for an enrollment
window, but the enrollment period does not start right away. Why does my
enrollment window only open several days or weeks into the
future? Updated |
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A. Typically the enrollment window begins with the
current date. However, if the selected test is available for scheduling,
but is not yet being administered, the enrollment window start date will
be the first date the test is offered. Also, if a candidate has recently
failed the specified test, the new enrollment window will start on the
first date after the required waiting period. (6/30/09) |
| Q. |
What if I need to cancel or reschedule my
testing appointment? Updated |
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A. Test enrollment fees are
non-refundable and non-transferable. You may cancel or reschedule a
reservation by contacting either the Pearson VUE or Prometric call
center, depending on which testing center you have selected. You
must cancel or reschedule your test no later than 12 p.m. local
time (at the location where the exam is being taken) two business
days prior to your scheduled appointment. (9/10/09) |
| Q. |
What should I bring with me to the test
center? |
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A. You must bring one form of a current
(non-expired) government-issued identification that includes your
photograph and signature. (6/26/09) |
| Q. |
Can I bring a calculator and/or scratch paper
into the test center? Updated |
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A. The testing center will provide scratch paper
and a basic calculator. (9/1/09) |
| Q. |
Are we allowed to take restroom breaks during
the test? |
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A. Yes, restroom breaks are permitted. However, the
test clock will not stop while you are taking a break, and as a result,
your test time will be shortened. (6/26/09) |
| Q. |
What am I allowed to bring into the test
center? |
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A. No personal items are permitted to be brought
into the test center. This includes but is not limited to: cell phones,
pagers, purses, wallets, coats, hats, etc. All of these items must be
locked in a secure locker upon arrival. Also, no food or drink is
permitted in the test center. (6/26/09) |
| Q. |
How will the tests be
scored? |
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A. All of the tests will be graded/scored
electronically. Once a candidate has finished taking a test component,
the candidate's score (percentage correct) and test result (pass/fail
designation) will appear on the screen. And before departing the test
center, a printed score report will be presented to the candidate by the
test center administrator. NMLS will post the official version of the
results to the Testing Information section under the Composite View.
(6/26/09) |
| Q. |
What score do I need to get to pass the
test? |
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A. By law, all MLOs seeking state-licensure, or
currently holding a state license, are required to pass both the
national and state components of the S.A.F.E. Mortgage Loan Originator
Test with a score of 75% or better on each component.
(6/26/09) |
| Q. |
Why are there un-scored questions on the
test? New |
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A. The ten pre-test (un-scored) questions appearing
on the National Component and each State Specific Component do not
affect the candidate's score or the pass/fail result. These pre-test
questions are being pilot tested for future use. Once these pre-test
questions are tested on a sufficiently large sample of candidates, these
questions will reviewed to determine if they meet appropriate test
standards to be considered for use as scored test questions on future
NMLS tests. (9/1/09) |
Education
| Q. |
Is it true that taking pre-licensure education is
NOT a prerequisite to taking the National or State components of the
SAFE test? |
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A. This is true. While we will encourage
individuals to take pre-licensure education prior to taking either the
National or State components of the SAFE test, if an individual chooses
to register and take an test prior to completing any education there is
nothing the system can do to stop them. (5/1/09) |
| Q. |
Can state-approved continuing education courses
completed by existing state licensed loan originators count toward the
20 hour pre-licensure requirement? |
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A. Yes. States that have existing education
requirements in place should continue administering those requirements
through at least 2009 and beyond depending on each state's SAFE Act
transition dates. It should be noted, however, that NMLS will not
be accepting “partial hours” from existing licensees so a
state-licensed loan originator that currently has anything less than 20
hours should complete their education as soon as possible or they will
be required to take the full 20 hours. Loan originators should contact
their state mortgage regulator for more information. (5/1/09) |
| Q. |
Who are the NMLS approved education providers?
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A. A list of NMLS approved course providers will be
posted on the NMLS resource web site in July. Until the listing
appears on the web site, there are no NMLS approved courses or
providers. (5/1/09) |
| Q. |
When do I need to complete my 20 hours of
pre-licensure education? |
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A. Currently state-licensed/registered mortgage
loan originators (MLO) must have their 20 hours of pre-licensure
education completed by January 1, 2011 or an earlier date determined by
your state. Non-licensed/registered MLO’s must have their
pre-licensure education completed by a deadline determined by the
regulator of the state in which they conduct loan origination activity,
but no later than July 30, 2010. (5/1/09) |
| Q. |
Do I have to take my pre-licensure or continuing
education all at once? |
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A. No, you may take multiple courses over a period
of time to reach the 20 hour PE or 8 hour
CE requirements. However, continuing education only counts for the
year in which it is taken so do not plan to take a course in December
and then another January since the course taken in January will not
count towards meeting the previous year’s continuing education
requirement. (5/1/09) |
| Q. |
Can I take the same continuing education course two
years in a row? |
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A. No, the SAFE Act specifically prohibits the
taking of the same course in successive years.
(5/1/09) |
| Q. |
If I work for a Commercial Bank do I need to
take the SAFE-required education courses? |
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A. If you work for an insured depository regulated
by OCC, OTS, FDIC, FED and NCUA or the Farm Credit Administration you
are not required to take the SAFE-required pre or continuing education
courses. You still can and may want to take the relevant PE and CE
courses in the event that you change employment and work for a
state-licensed lender or broker. (5/1/09) |
| Q. |
How do I find and register for NMLS approved
education courses? |
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A. A list of NMLS approved course providers will be
posted on the NMLS Resource website in July. Until the listing
appears on the website there are no NMLS approved courses.
(5/1/09) |
Course Providers
| Q. |
Can I apply to become an approved course provider
now? Updated |
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A. NMLS will begin accepting provider applications
on June 22, 2009. Information regarding the requirements associated with
how to become an approved course provider have been posted to the Course
Provider area of the NMLS web site and applicants are strongly urged to
review this material prior to applying. (6/26/09) |
| Q. |
How do I apply to become an approved course
provider? |
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A. Detailed instruction for how to submit an
application to become an approved course provider have been posted on
the NMLS resource web site and are contained in a document titled
“USER Guide: NMLS Course Provider Application Process.”
Course providers are strongly encouraged to read this document prior to
filling out their application forms and submitting their application
online.(6/19/09) |
| Q. |
Do I need to pay a separate fee for each course
format? |
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A. Because every course is approved for the format
in which is it submitted a provider will have to pay a separate fee for
each course format. For example, if a provider intends to offer a 20
hours SAFE Comprehensive course both online and via traditional
classroom then the provider will need to submit that course for approval
twice. The reason for this is that while the content may essentially be
the same, the student experience, the display of content, types of
activities associated, the technology associated with the delivery of
the course are going to be significantly different. (6/19/09) |
| Q. |
Will NMLS approve correspondence courses? |
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A. Correspondence courses are not one of the
approved classroom formats for either pre-licensure or continuing
education since there is no way to verify that a correspondence course
will meet the minimum time requirements associated with pre-licensure or
continuing education as required by the SAFE Act. (5/13/09) |
| Q. |
As a course provider, do I have to receive both NMLS
and individual state approvals for my courses? |
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A. In most scenarios, a course provider will not be
required to receive both NMLS and individual state approvals for their
courses. That said, there are some states that will have an education
requirement above the 20 hours of pre-licensure or the 8 hours of annual
continuing education. In these cases, states may require courses to
undergo an approval process to confirm the courses meet their
state-specific requirements . (5/13/09) |
| Q. |
Is there a listing of states that have an
educational requirement above those required by the SAFE Act? |
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A. Currently, there is not a comprehensive list
available since many states are still working on passing SAFE
legislation. NMLS is working to collect this information as state
legislation is passed and will post a list on the NMLS Resource website
as soon as it is available. (5/13/09) |
| Q. |
Will NMLS be approving all education course
providers and courses or will the individual state regulators be
approving the education in their own states? Updated |
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A. Per the SAFE Act, the NMLS is the sole approving
body for course providers and courses that are intended to satisfy the
pre-licensure and continuing education requirements of SAFE. For state
specific education requirements beyond SAFE, NMLS will coordinate with
individual states for approving those courses. (6/19/09) |
| Q. |
Can you explain the reason why CE is not required in
2009 and why NMLS will not be accepting CE courses for approval until
the 4th quarter of 2009? |
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A. The primary reason why CE is not required in
2009 is because MLO’s are initially required to complete their
pre-licensure education (PE) requirement and PE satisfies the education
requirement for the year in which it was completed. |
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Thus, unless there is a state-specific requirement
for an MLO to have CE completed this year, the SAFE PE requirement that
is satisfied either through completion of a course or as being certified
as being completed by the State Commissioner, will have satisfied an
individual’s education requirement for 2009. In 2010, and
depending on each State’s SAFE implementation plan, there will be
a mix of people who will be required to satisfy either the PE or CE
requirement. |
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So, because there is no requirement for CE in 2009,
NMLS will initially focus on approving PE courses for those 12 states
that are on the “fast track” list (AZ, ID, IA, LA, MA, MI,
NH, NC, PA, RI, VT, WA) and those states that are either on NMLS or who
will be coming on NMLS in 2009. (5/1/09) |
| Q. |
Can individual States use part of the 12 undefined
hours for state-specific education requirements? |
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A. The short answer is yes. However, there is
no uniform standard associated with how many of the 12 hours a state can
use and no specific trend has emerged. A course naming convention
has been developed regarding how to identify courses that may have
specific content embedded in them. In the short term, course providers,
along with NMLS, will determine state-specific course requirements
that were included in their state's SAFE legislation.
(5/1/09) |
| Q. |
Should NMLS set high initial standards for online
education courses? Updated |
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A. This is a consistent message that we have been
hearing from the industry. In response to this concern NMLS produced a
“Functional Specifications for NMLS Approved Instructor-Led Online
Courses.” A functional specification for online continuing
education courses is currently being written and will be ready in
mid-July. A functional specification for Classroom Equivalent courses
has also been written. All of these documents are available on NMLS
Resource Center web site. (6/19/09) |
| Q. |
For determining online course time, NMLS states
that course providers will be required to take a sampling of
students. How many is in a sampling? Updated |
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A. A reasonable sampling is between 6 and 8
students. Specific details for determining online course time is
available in the Functional Specification for NMLS Approved
Instructor-Led Online Courses. Note: the requirement to take a sampling
of student only applies to instructor-led online courses.
(6/19/09) |
| Q. |
Can you refund a student if they don’t pass an
exam? |
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A. Refunding a student if they do not pass the
National or State component of the SAFE test would, in effect, be an
implied guarantee that the student will pass a test based upon a course
they have taken from the provider. NMLS approved course provider
marketing policies prohibit a course provider from guaranteeing a
student that they will pass a test based upon a course they have taken
with them. (5/1/09) |
| Q. |
In putting together the National and State
components of the SAFE test, whose body of education is being referenced
and how will a course provider know this? |
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A. The test outlines, for both the Federal and
State components, are being made available on the NMLS web site, and
will point to a specific body of reference material that a course
provider will be able to refer to as part of designing their
courses. (5/1/09) |
| Q. |
What states are on the “fast track?”
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A. The “fast track” states are AZ, ID,
IA, LA, MA, MI, NH, NC, PA, RI, VT, WA. The State component of the
SAFE test for these states is scheduled to be completed by July 2009.
(5/1/09) |
| Q. |
What is the format for the unique MLO
identifier? |
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A. The NMLS Unique ID is stored as an Oracle INT
(numeric integer) and is not expected to exceed one trillion (or 12
digits). (5/1/09) |
| Q. |
When will we know what states have requirements
above and beyond the SAFE requirements? |
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A. NMLS is currently tracking the progress of each
state's SAFE enabling legislation and is compiling a chart that will
list each state’s education requirements. As soon as that
chart is produced (estimated to be late spring/early summer) it
will be posted on the NMLS Resource website. (5/1/09) |
| Q. |
Are there fees associated with applying to become a
course provider? |
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A. Yes. All the fees associated with testing and
education have been posted to the NMLS resource web site and are
available under the link Complete Fee Schedule on the Course Provider
page. (5/13/09) |
| Q. |
When can the state associations apply to be a
provider? Updated |
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A. The state associations can begin to apply to
become a provider on June 22 and will be able to begin submitting
courses in mid-July. (6/19/09) |
| Q. |
Did NMLS develop the policies and standards in
isolation or were other groups involved? |
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A. To assist in the drafting of all the test and
education policies and standards NMLS formed a Regulator Test and
Education Committee comprised of state representatives from California,
Florida, Louisiana, Maryland, Maine, Michigan, North Carolina, New
Jersey, Oregon, Pennsylvania, South Carolina, Texas, Utah, and
Washington. NMLS also formed a Course Provider Working Group comprised
of 16 members representing state trade associations and commercial
providers that met between April and June 2009 who also assisted to
review the policies and provided technical input to various documents.
(6/19/09) |
| Q. |
How long does the application review process
take? |
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A. NMLS anticipates it will take approximately two
weeks to review Course Provider applications and approximately 30 days
to review individual Course Approval applications. Times may initially
vary depending upon volume of applications received. (6/26/09) |
| Q. |
Who should I contact if I have questions regarding
the status of my application or if I have any other questions? |
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A. Questions should be submitted to nmls.edu@stateregulatoryregistery.org.
NMLS makes every effort to respond to questions within 24 hours.
(6/26/09) |
| Q. |
Who should I contact if I'm having a problem
submitting the online application? |
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A. Customer support for the online application form
is available from 9am to 6pm ET Monday thru Friday. The phone number is
1.877.234.6090. (6/26/09) |
| Q. |
The application forms are in PDF? Do I need Adobe
Reader? |
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A. NMLS recommends that you have Adobe Reader 7.0
or higher to complete the necessary application forms and documents
(available free at www.adobe.com). Additionally, there is a 1 MB file
upload limit for both the Provider Application and the Course Approval
application processes. Submitting files in PDF format will help ensure
you don't exceed the file size limits. (6/26/09) |
| Q. |
Is NMLS credentialing individual instructors?
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A. NMLS currently does not credential individual
instructors to teach specific SAFE-related courses. (6/26/09) |
Background Check
| Q. |
Credit acceptance: Many jurisdictions indicate that
an individual has to have credit "satisfactory" to state regulators.
Jurisdictions, however, need to provide some additional parameters: are
they looking for a certain credit score minimum? Will they not accept
any open judgment or prior bankruptcy? Statement as to credit is
normally vague and a lot of time is spent trying to answer the question
"What exactly they are looking at as far as credit?” |
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A. Regulators are currently developing a set of
standards that will streamline the review of credit reports in order to
assist regulators fulfill the SAFE Act's mandate assess the financial
responsibility of a loan originator. The guidelines have not been
finalized but will be made available on the NMLS Resource Center when
they are complete. (6/19/09) |
| Q. |
Fingerprinting/Criminal background checks: when this
goes on NMLS, how will this work? Currently, we have to obtain
fingerprint cards from other states, have fingerprints done here in MD
then send them to the particular State or State BI; I truly do not
understand why there has to be fingerprinting done for each state; and
criminal background checks for each state. I can understand doing the
fingerprints in the domicile state; but isn't there a National
fingerprint registry system? If you pull a National Criminal background
check, why do you have to also pull a state criminal background check -
all states are part of the same Nation? This process is so time
consuming and costly." |
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A. The current plan is to have a fully electronic
fingerprinting process in place for NMLS. A LO will have to provide
fingerprints for purposes of a national criminal background check each
time they apply for a new license and pay the background check fee.
Licensees with one or more existing licenses will have to provide
fingerprints for purposes of a national criminal background and pay the
background check fee as well. Loan originators licensed in multiple
states will generally only have to submit one set of fingerprints for
the national background check for all states they are licensed in (or
applying) but pay background check fees each time a national criminal
background check is received. Further details on fingerprinting will be
posted to the NMLS Resource Center when they are finalized.
(6/19/09) |
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