2013 Maryland Code
FINANCIAL INSTITUTIONS
§ 11-606 - Prelicensing education courses.

§11-606.

(a) To qualify for an initial license, an applicant shall complete at least 20 hours of prelicensing education that shall include:

(1) 3 hours of instruction on federal law and regulations relating to mortgage origination;

(2) 3 hours of instruction on ethics, including instruction on fraud, consumer protection, and fair lending issues; and

(3) 2 hours of training related to lending standards and loan terms for nontraditional mortgage products.

(b) (1) All prelicensing education courses shall be reviewed and approved by the Nationwide Mortgage Licensing System and Registry.

(2) Review and approval of a prelicensing education course shall include review and approval of the course provider by the Nationwide Mortgage Licensing System and Registry.

(c) Prelicensing education may be offered in a classroom, online, or by any other means approved by the Nationwide Mortgage Licensing System and Registry.

(d) An applicant’s successful completion in another state of the prelicensing education requirements approved by the Nationwide Mortgage Licensing System and Registry, except prelicensing education requirements specific to that other state, shall be accepted by the Commissioner as credit toward completion of prelicensing education requirements in this State.

(e) This section does not preclude any prelicensing education course, as approved by the Nationwide Mortgage Licensing System and Registry, that is provided by the employer of the applicant or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of the employer or entity.

§ 11-606 - 1. Written tests.

(a) In general. -- To qualify for an initial license, an applicant shall pass a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and administered by a test provider approved by the Nationwide Mortgage Licensing System and Registry.

(b) Subjects included. -- A written test shall not be treated as a qualified written test for purposes of subsection (a) of this section unless the test adequately measures the applicant's knowledge and comprehension in appropriate subject areas, including:

(1) Ethics;

(2) Federal law and regulations relating to mortgage origination;

(3) State law and regulations relating to mortgage origination; and

(4) Federal and State law and regulations relating to fraud, consumer protection, the nontraditional mortgage product marketplace, and fair lending issues.

(c) Passing grade. -- To pass a qualified written test, an applicant must receive a test score of at least 75 percent.

(d) Retesting. -- An applicant may take a test three times, provided that each subsequent test occurs at least 30 days after the preceding test.

(e) Additional retesting. -- After failing three tests, an applicant shall wait at least 6 months before taking the test again.

(f) Testing after failure to renew and maintain license. --

(1) A licensee who fails to renew and maintain a valid license for a period of 5 years or longer shall retake the test and achieve a passing grade as set forth in subsection (c) of this section before obtaining a new license.

(2) Calculation of the time period during which an individual is unlicensed under paragraph (1) of this subsection shall exclude any time during which the individual is a registered mortgage loan originator.

(g) Test provided by employer or affiliated entity not precluded. -- This section does not prohibit a test provider approved by the Nationwide Mortgage Licensing System and Registry from providing a test at the location of the employer of the applicant or any subsidiary or affiliate of the employer of the applicant, or any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.