N.Y. Banking Law § 599-g: Testing of mortgage loan originators

§ 599-g. Testing of mortgage loan originators. 1. General

requirements. In order to meet the written test requirement referred to

in this article, an individual shall pass, in accordance with the

standards established under this section, a qualified written test

developed by the NMLSR and administered by a test provider approved by

the NMLSR based upon reasonable standards.

2. Qualified test. A written test shall not be treated as a qualified

written test for purposes of subdivision one of this section unless the

test adequately measures the applicant's knowledge and comprehension in

appropriate subject areas, including the following:

(a) Ethics;

(b) Federal law and regulation pertaining to mortgage origination;

(c) State law and regulation pertaining to mortgage origination; and

(d) Federal and state law and regulation, including instruction on

fraud, consumer protection, the nontraditional mortgage marketplace, and

fair lending issues.

3. Testing location. Nothing in this section shall prohibit a test

provider approved by the NMLSR from providing a test at the location of

the employer of the applicant or the location of any subsidiary or

affiliate of such entity, or the location of any entity with which the

applicant holds an exclusive arrangement to conduct the business of a

mortgage loan originator.

4. Minimum competency. The following conditions apply to individuals

taking such competency tests:

(a) An individual shall not be considered to have passed a qualified

written test unless the individual shall have achieved a test score of

not less than seventy-five percent correct answers to questions;

(b) An individual may retake a test three consecutive times, with each

consecutive taking occurring at least thirty days after the preceding

test;

(c) After failing three consecutive tests, an individual shall wait at

least six months before taking the test again; and

(d) A licensed mortgage loan originator who fails to maintain a valid

license for a period of five years or longer, not taking into account

any time during which such individual is a registered mortgage loan

originator, shall retake the test.