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An overview of the new NMLS Uniform State Test (UST) and how it affects current and new Mortgage Loan Originators.
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The NMLS Uniform State Test(UST)
Understanding and Benefitingfrom the Change
4/8/2013 American Education Systems, LC 2
For more information:
www.AmEdSys.com
586.726.6339 Fax 586.726.1059
4/8/2013 American Education Systems, LC 3
The First Major Change to theSAFE MLO Requirements
• This is the first major change to SAFEMLO Test requirements since the SAFEMLO tests were launched in July, 2009
• The UST is a new “domain” -- or section --in the National Test
4/8/2013 American Education Systems, LC 4
How it Changes the TestRequirements
• Brings the length of the National TestComponent with Uniform State Content to125 questions
• Increases Test maximum time to 190minutes an Appointment maximum time to225 minutes
4/8/2013 American Education Systems, LC 5
Comparison of Previous NationalComponent Test with New Test
Previous Test
100 questions, 90scored
150 minutes max.time
180 minutes max.appt.
$92 test fee
Test with UST
125 questions, 115scored
190 minutes max.time
225 minutes max.appt.
$110 test fee
4/8/2013 American Education Systems, LC 6
UST Implementation
• Transition – January to April, 2013
• Launch – April 1, 2013
– National Test “retired”
– 20 States adopt new test and retire existingstate-specific tests
– Stand-alone UST Test offered
4/8/2013 American Education Systems, LC 7
States Implementing UST
• 20 states “earlyadopters”; Michigan isone of them
• 5 states to adopt byJuly, 2013
• Texas to adopt byOctober, 2013
4/8/2013 American Education Systems, LC 8
“Stand Alone” UST Test
• For a limited time, a special test component,called the Stand-alone UST, will be available
• Offered only between April 1, 2013 and March31, 2014
• Available for anyone who has already passedthe previous (“retired”) National Test
4/8/2013 American Education Systems, LC 9
Current Benefits of Taking theUST
• UST replaces the state-specific testcomponents for any state that adopts it
• By passing the National with Uniform StateContent OR the Stand-alone UST, acandidate can satisfy the testingrequirements for licensure in ALL 20adopting states at one time
4/8/2013 American Education Systems, LC 10
Future Benefits
• Passing the UST automatically satisfiesthe testing requirements for any state thatadopts in the future
• Example: Kansas is adopting on July 1,2013. If a candidate passes the UST onApril 15, 2013, they will have satisfied thestate testing requirements for Kansas onJuly 1, 2013
4/8/2013 American Education Systems, LC 11
“Playing Nice”
• From NMLS:
– “Current licensees are not required to take theStand-alone UST, but they are stronglyencouraged to do so if they plan to belicensed in any other states in the future.”
4/8/2013 American Education Systems, LC 12
Material Covered on UST
• Tests applicants on their knowledge ofhigh level state-related content
• Based on the SAFE Act and theCSBS/AARMR Model State Law (MSL)which many states used to implement theSAFE Act
4/8/2013 American Education Systems, LC 13
UST Stand-alone Test Structure
• 25 questions, all of which are scored
• 45 minute max. test time
• 75 minute max. appt. time
• $33 test fee
4/8/2013 American Education Systems, LC 14
Comparison of UST with State-specific test
State-specific
55-65 questions, 45-55 of which arescored
90 minute max. testtime
120minute max. appt.time
$69 test fee
Stand-alone UST
25 questions, all ofwhich are scored
45 minute max. testtime
75 minute max. appt.time
$33 test fee
4/8/2013 American Education Systems, LC 15
Scoring of the National Test withUST component
• Stand-alone UST score will be combinedwith the candidate’s passing score on theNational Test Component
• The Stand-alone UST score added to thescore of the National Test must equal ATLEAST 87 out of the 115 scored items onthe test (75%)
4/8/2013 American Education Systems, LC 16
Scenario One
Agnes PASSED the National Test 80%
• (72 correct / 90 scored)
• Takes Stand-alone UST gets 15/25 correct
• UST results are added to Nat’l results
• 72 + 15 = 87 correct; 87/115 = 75%
• Agnes’ UST result is a PASS
4/8/2013 American Education Systems, LC 17
Scenario Two
Bruce PASSED the National Test
• 75% (68 correct / 90 scored)
• Takes Stand-alone UST gets 12/25 correct
• UST results are added to Nat’l results
• 68 + 12 = 80 correct; 80/115 = 69%
• Bruce’s UST result is a FAIL
• BUT, Nat’l results remain a PASS
4/8/2013 American Education Systems, LC 18
Scenario Three
Carol has not taken the National Test
• Takes National Test with UST
• Gets 85 correct; 85 / 115 = 73%
• Result is a FAIL on the National and UST
4/8/2013 American Education Systems, LC 19
Scenario Four
Doug has not taken the National Test
• Takes National Test with UST
• Gets 91 correct; 91 / 115 = 79%
• Result is a PASS on the National and UST
• SAFE Test Compliant for any UST State
• Must take state specific for non-UST State
4/8/2013 American Education Systems, LC 20
Scenario Five
Elaine took the National Test with a score of 82%,result is a PASS on the National Test
• Elaine does not take the Stand-alone UST Testduring its administration (4/1/13 – 3/31/14)
• Elaine takes the National with UST and scores a71% (82 correct / 115). She receives a FAIL forUST but retains her PASS for the National
• She must retake the National with UST toachieve compliance for the UST
4/8/2013 American Education Systems, LC 21
Scenario Six
Fred took the National Test and scored 77%with a result of PASS
• Fred does not take the Stand-alone USTTest during its administration
• Fred takes the National with UST andscores a 81% (94 correct / 115). Hereceives a PASS for UST and is compliantfor any state which requires the UST.
4/8/2013 American Education Systems, LC 22
Summary of Benefits
• The UST offers the MLO many benefits
– Allows for meeting licensing requirements in multiplestates with only ONE test
– One-time test fee of $33 (for Stand-along UST) vs.$69 each time the MLO gets licensed in a new state
– One-time max. test time of 45 minutes vs. 90 minuteseach time the MLO takes a state-specific test
– 25 questions to answer vs. 55-65 questions per state-specific test
4/8/2013 American Education Systems, LC 23
Comparison for currentlylicensed MLO
Non-UST Approach
• $1131 in State-specific test fees
• 2850 minutes in testtime
• 1045 test questions
UST Approach
• $33 in UST test fees
• 45 minutes in testtime
• 25 questionsanswered
4/8/2013 American Education Systems, LC 24
Time to Act is NOW
• Window for taking the Stand-alone USTcloses March 31, 2014
• After Stand-along UST is “retired” March31, 2014, all licensees will need to takethe combined National Test with UST
4/8/2013 American Education Systems, LC 25
Penalty for Failing to Act
• Must answer an additional 100 questions
• Content of additional 100 questions significantlymore complex
• Max. test time lasts an additional 145 minutes
• Test fee is an additional $77
4/8/2013 American Education Systems, LC 26
Resources for the UST
• Content Outlines from NMLSStand-alone
National Test with UST Component
• WorkshopsOne hour review, $75.00 per person
• CompuCram Software1000+ questions National content, 350
questions+ UST content, $69.00
4/8/2013 American Education Systems, LC 27
How to Order
• To set-up a one-hour workshop review ororder CompuCram software, contact us at:
1-800-775-6339
www.AmEdSys.com
4/8/2013 American Education Systems, LC 28
About This Presentation
• This presentation was derived from information available at theNMLS Resource Center. While current at the time of creation, theregulatory landscape is constantly evolving, leading to someportions becoming outdated.
• While reasonable care has been taken in the preparation of thiscourse and its text, American Education Systems, LC accepts noresponsibility or liability for any error, omissions, or misstatements itmay contain. It is not designed to provide legal advice, and is soldwith the understanding that the publisher is not engaged inrendering legal, accounting, or other professional services. If legaladvice or other expert assistance is required, the services of acompetent professional should be sought.
