2013 New York Consolidated Laws
BNK - Banking
Article 12-E - (599-A - 599-R) LICENSED MORTGAGE LOAN ORIGINATORS
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.