Frankfort, KY – The Kentucky Department of Financial Institutions is now using the new uniform state test component for mortgage loan originators and processors. Kentucky is among 25 states to adopt the new test.
Previously, mortgage loan originators not only had to pass the national test component – they also had to pass a separate component for each state in which they wished to do business. The new, single test with the uniform state component will satisfy the requirement for any or all of the 25 states in which it has been adopted, according to a state news release.
“This new test makes the licensing process more efficient for those originators working in multiple states. It streamlines the supervisory process while continuing to protect citizens and ensure safety and soundness,” DFI Nondepository Division Director Sarah Butler said in the news release. “Through state-specific education requirements and regular examinations, we can continue to hold originators responsible for complying with Kentucky law.”
The majority of the new test component material focuses on the states’ authority to enforce violations of state and federal law and the states’ ability to penalize offenders. All mortgage loan officers registered in Kentucky are required to earn four hours of Kentucky-specific continuing education every other year.
Most of the 25 adopting states will begin using the test on April 1, and the remainder will begin using the test on July 1. Additional states are expected to adopt the uniform state content.