A Little Advice About the Pre-Licensing Exams

The SAFE Act, as implemented by each state, requires that all loan originators pass an exam with a 75% passing rate before they can get approved for a loan originator license by each state in which they originate or broker loans. The SAFE test consists of two components – a national test and a state test. Loan originators wishing to get licensed in more than one state must take the state component in each state in which they will be submitting a license application, but must pass the national component only once. The testing requirement must be satisfied by new applicants before they can be approved for a license. If you are currently licensed in a state that is transitioning to the NMLS (nationwide mortgage licensing system), then you transition your license first and the state has set a deadline by which you must pass the two test components.

For those loan originators with testing deadlines, it is important to schedule your test during a slow time at work and not wait until just before the licensing deadline. My clients have found their own state component to be fairly easy to pass but many fail on the first try in states in which they don’t do many loans. I would suggest that for those states, take the required 20 hours of pre-licensing education and then immediately after, take the exam while the material is still fresh in your mind. If you fail the test, you must wait 30 days until you can re-take the exam.

If December is a slow time of the year for you (not so many people are looking for houses during the Christmas season), take your pre-licensing education now and schedule the test for before the New Year starts. Good luck!

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