Mortgage

Minnesota becomes last state to implement speedier LO licensing

MBA celebrates end of 5-year effort

The Mortgage Bankers Association announced Wednesday the Minnesota Department of Commerce became the last regulator to announce their adoption of the Uniform State Test for mortgage lenders.

Five years ago, the MBA launched the UST for licensing mortgage loan originators. It was originally launched as an optional option in April 2013 with 27 state agencies signing on.

Proponents for the test explained the development and adoption of the uniform tests streamlines the process for loan officers seeking licenses in multiple states.

The MBA sent out a letter to its members, recognizing the work it took to come to this point. The association explained many regulators were hesitant to give up their own tests, and saw UST as a competitive threat.

“We beat back that opposition state by state and we now have a uniform nationwide testing standard,” Senior Vice President of Residential Policy and Member Engagement Pete Mills said in a letter to MBA members. “We were successful only because of the hard work of the state and local mortgage banking associations and volunteer advocates among our member companies.”

The MBA explained this is just one step in its broader effort to bring more uniformity to state licensing, saying it is now hard at work to push some of its other initiatives.

“We have a number of other initiatives underway with our state and local association partners, including our next 50-state campaign – adoption of MBA's model remote online notarization legislation (in partnership with the American Land Title Association),” Mills wrote. “That effort kicked off in earnest this past January and has already resulted in four states adopting measure consistent with our bill, and several other states actively working on it.”

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