State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-244_080

§ 53‑244.080.  Testingrequirements for mortgage loan originators.

(a)        An individual mustpass a qualified written test, as defined by subsection (b) of this section,developed by the Nationwide Mortgage Licensing System and Registry andadministered by a test provider approved by the Nationwide Mortgage LicensingSystem and Registry. In addition, prior to licensure in this State, anindividual must take a qualified written test that tests the individual'sknowledge and comprehension of North Carolina law and regulation.

(b)        A written testshall not be treated as a qualified written test unless the test adequatelymeasures the applicant's knowledge and comprehension in the following subjectareas:

(1)        Ethics;

(2)        Federal law andregulation pertaining to mortgage origination;

(3)        North Carolina lawand regulation pertaining to mortgage origination; and

(4)        Federal and NorthCarolina law and regulations relating to fraud, consumer protection,nontraditional mortgage products, and fair lending issues.

(c)        Nothing in thissection shall prohibit a test provider approved by the Nationwide MortgageLicensing System and Registry from providing a test at the location of theemployer of the applicant or the location of any subsidiary or affiliate of theemployer of the applicant, or the location of any entity which is licensed byNorth Carolina to engage in the mortgage lending business.

(d)        An applicant shallbe considered to have passed a qualified written test provided the applicantachieves a test score of at least seventy‑five percent (75%) correctanswers to questions. In addition, an applicant shall not be considered to havepassed a qualified written test if the individual did not achieve a test scoreof at least seventy‑five percent (75%) correct answers to questionsrelated to North Carolina law and regulation.

(e)        An applicant mayretake a test three consecutive times with each consecutive test occurring atleast 30 days after the preceding test. After failing three consecutive tests,an applicant must wait at least six months before retaking the test. A licensedmortgage loan originator who fails to maintain a valid license for a period ofthree years or longer must retake the test.  (2009‑374, s. 2.)