The Conference of State Bank Supervisors announced Tuesday that the Colorado Division of Real Estate began using the nationwide SAFE mortgage loan originator test with uniform state component on March 1. As a result, 51 state agencies now use the test.
The act requires mortgage loan originators employed by state-regulated companies to pass a SAFE MLO test before they can be licensed with a state agency.
As part of the new requirements, applicants for licensure will need to complete two hours of Colorado specific pre-licensing education. The total number of pre-licensing hours in Colorado has not increased, but the course content requirements have changed to replace previously required general elective with a state-specific elective.
“The adoption of the National SAFE MLO examination with uniform state content is another great example of the division working collaboratively with industry stakeholders on reducing the regulatory burden of licensed individuals doing business in Colorado,” said Marcia Waters, director of the Colorado Division of Real Estate.
“Furthermore, the new education requirements will ensure consumers are working with licensed MLOs familiar with the state-specific requirements for originating loans in this state and fulfilling the Division’s mission of protecting the Colorado consumer, added Waters.
The MLO test, which was first made available on April 1, 2013, brought in 26 state agencies. The test combines both the national and state testing requirements of the SAFE Act and streamlines the license application process for MLOs seeking licenses in multiple states.
“Colorado’s adoption of the Uniform Standard Test represents one more crucial step toward a single national testing standard for MLOs,” said Robert Entringer, commissioner of the North Dakota Department of Financial Institutions and Chairman of the State Regulatory Registry.