§ 535d-8

535D.8 Test requirements. 1. An applicant for licensure shall pass a qualified written test developed by the nationwide mortgage licensing system and registry and administered by a test providerapproved by the nationwide mortgage licensing system and registry based upon reasonablestandards. 2. A written test shall not be treated as a qualified written test for purposes of subsection 1 unless the test, in the determination of the nationwide mortgage licensing system and registry,adequately measures the applicant’s knowledge and comprehension in appropriate subjectareas including the following: a. Ethics.b. Federal laws and regulations pertaining to residential mortgage loan origination.c. State laws and regulations pertaining to residential mortgage loan origination.d. Other relevant federal and state laws and regulations, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues. 3. Nothing in this section shall prohibit a test provider approved by the nationwide mortgage licensing system and registry from providing a test at the location of the employerof the applicant or the location of any subsidiary or affiliate of

test provider approved by the nationwide mortgage licensing system and registry from providing a test at the location of the employerof the applicant or the location of any subsidiary or affiliate of the employer of the applicant,or the location of any entity with which the applicant holds an exclusive arrangement toconduct the business of a mortgage loan originator. 4. An applicant shall not be considered to have passed a qualified written test unless the applicant achieves a test score of not less than seventy-five percent correct answersto questions. An applicant who fails to achieve a test score of not less than seventy-fivepercent correct answers to questions may retake the test three consecutive times witheach consecutive retake occurring at least thirty days after the preceding test. After threeconsecutive failed tests, an individual shall be required to wait at least six months beforetaking the test again. A licensed mortgage loan originator who fails to maintain a validlicense for a period of five years or longer shall be required to retake and successfullypass the test, not taking into account any time during which such individual is a registeredmortgage loan originator.

for a period of five years or longer shall be required to retake and successfullypass the test, not taking into account any time during which such individual is a registeredmortgage loan originator. 2009 Acts, ch 61, §9, 25Referred to in §535D.6 Sat Dec 23 01:38:37 2023 Iowa Code 2024, Section 535D.8 (16, 0)