Comments on: New National LO Exam Pass Rate 69%

By: Dora

Dora — Wed, 23 Jun 2010 15:51:41 +0000

I like Joe’s comment. It is time to get some payback to brokers and loan originators at brokers who have put in the extra time, effort and especially money. We should be singled out as the best of the best, while anyone can go work at a bank. I’ll spend the time and money, but danged if I want it to advertised as because we are all crooks.

Joe is especially correct about Wall Street! Washington keeps telling everyone it was the broker that broke the housing market; most of us know it was rating firms and Cuomo piled on with HVCC. Politics for you. Most of those guys in Washington have no idea of what they are voting on. They just do what the banks want them to do. No matter what party they are they are too clueless.

By: Joe Adamaitis

Joe Adamaitis — Mon, 14 Jun 2010 13:25:14 +0000

Taking the test today and feel it is about time that we have a formal designation related to our licesnes that carries some clout. As for the bankers who are exempt, the politicians just keep protecting them. No differnet than whebn Wall St and the big banks were exempt from crimminal charges. They ruined our industry and they continue to find ways around being held accountable. By the way, how many of you loan officers came up with the brilliant idea of never asking for a pay-stub or W-2? Sure wasn’t my idea!

By: Jillayne Schlicke

Jillayne Schlicke — Thu, 29 Apr 2010 00:22:40 +0000

Hi Sue,

I recommend the School of Mortgage Lending. Click on Calif and scroll down to see her state prep course:

http://schoolofmortgagelending.com/

By: Sue Carlson

Sue Carlson — Thu, 29 Apr 2010 00:06:39 +0000

I am looking for a study guide specific to the State of CA test – there are plenty out there for the National, but how do we study for the state exam?

By: Eric

Eric — Wed, 21 Apr 2010 18:40:54 +0000

I’m glad I found this site. I’m a wholesale rep and I used to own a brokerage/correspondent business during the boom. I think LO’s should like the fact that we need to put some barriers to entry to our industry. As a wholesale rep, only 30% of my LO’s are technically savvy enough to provide the borrowers with a full picture of what they are getting themselves into. I think it’s a shame that the banks are not required to have their LO’s pass the test as well. On top of that, California is not doing anythign different with their licensing of MLO’s either. The dept of corporation and DRE are a joke when it comes to testing MLO’s. MLO’s should embrace this for the future of our business.

By: Wendy Mueller

Wendy Mueller — Mon, 19 Apr 2010 01:36:51 +0000

I am going to use my license to my advantage, The banks such as Wells, B of A and Chase all the LO’s in there do not have to do this at all. So advertise yourself as the best in the business and who you gonna trust a licensed LO or an unlicensed LO…….Use it

By: Ken Cook

Ken Cook — Wed, 14 Apr 2010 21:05:55 +0000

I did find it interesting there were some bank recruiters calling around in the Atlanta area asking loan officers how they did on their tests and if they would be interested in bringing their business to the bank if they failed the test(s). Equal licensing for all.

The tests are not that difficult for anyone who has paid attention.

By: Daniel Mulvehill

Daniel Mulvehill — Fri, 26 Feb 2010 21:53:36 +0000

Safe Act well its now all about passing an exam to appease the or what jurisdiction??? As my experience tells me you didn’t need a license to perform mortgage and I mean perform mortgages?? Not originate to make a bundle of money , well I certainly should know what a million dollars is to earn over 40 years in the profession but license what is the true value, if you committ an offense they suspend the license wow why dosen’t the attorney generals of each state defend the customers personally, instead of paying NMLS there slice of what pie lets the states keep the money California is laying off good people why, but NMLS is growing like the abnd and doing the police work of each state whom are all hurting, NMLS I don’t think will be here for a long time it will eventually go back to each state, I wish I were in the position to be a Governor I would show and demonstrate what it would take to make income for my State and show the unprofessional licensees be ware you will go to jail and loose all of those big housed and hummers in the driveway etc, with no lack of unproffessioalism it has it’s place but can be better restructured within each state.

By: Jillayne Schlicke

Jillayne Schlicke — Sun, 21 Feb 2010 01:06:01 +0000

Hi Steve and Rick,

Yes, LOs who work for a depository institution AND are regulated at the federal level are exempt from education and testing.

However…they are NOT exempt from registering into the NMLS system.

They will be referred to as “registered LOs” and you will be referred to as “licensed LOs.”

It’s just a matter of time before they are brought underneath the same requirements as you. Patience.

By: Steve Harkness

Steve Harkness — Sat, 20 Feb 2010 16:30:08 +0000

Dear Rick, and Jillayne please correct me on this if I am wrong, but it was my understanding that this new test under the SAFE act was a requirement for everybody. I know the Mortgage Bankers PAC has been trying to poke holes in this legislation with the best lobbyist money can buy. If they have been successful in castrating this legislation, Rick is right and why bother to continue to fight? The banks will of won and 17 years of my life, doing the best I could to ethically help the consumer, are essentially, down the drain, and meaningless.

I would love to hear comments

By: Rick Cyngier

Rick Cyngier — Thu, 18 Feb 2010 20:00:09 +0000

I think keeping the felons out of our business was a good start, but some of this licensing mill production is questionable. Some of the questions on the state exam that I took years ago asked questions not related to the knowledge and skill level of a loan officer. Just another attempt by the government to make more fee income from many of us trying to etch out a living. More disconcerting are the exemptions of some in our profession who are not required to take the continuing Ed, or have to be licensed. If this NMLS raises the bar of skill level for most loan officers, it will be a surprise. I do believe it will weed out those who look at this profession as part time or inconsequential to how it affects our mortgage clients.

By: Jillayne Schlicke

Jillayne Schlicke — Wed, 10 Feb 2010 01:42:37 +0000

Hi Amy,

In a way, that’s good because we should have a decent barrier to entry. NMLS says they’re not publishing any study guides and instead want LOs to seek out prep materials from course providers…like me!

Most of the students in the 20 hour Pre-licensing class are highly focused on wanting to know how to pass the test so we run the class like a pre-licensing/exam prep course.

The students who are having trouble passing tend to be brand new students who know nothing about the industry. They will need to do more studying beyond just their 20 hour course.

By: amy

amy — Wed, 10 Feb 2010 00:29:14 +0000

I wish the nmls sample test questions were what was on the test. I would have made a 100. I made an 86 and believe me it was difficult. I am glad they are finally testing our industry but their needs to be some kind of study guide out there. I took my 20 hour course and made a 98 on the test. The nmls test in know way mirrored that test.

By: Stephanie Kessler

Stephanie Kessler — Thu, 21 Jan 2010 21:53:45 +0000

I am a loan officer with a large Financial Corporation. I have done mortgages for 7 years but we strictly do fixed rate 1st or 2nd. We do not do subprime loans or offer anything to where we had to know any of this information. Our company set our guidelines for us to follow. We are going to have a very hard time because we have no experience with this type of industry. Also, I have already done an online test prep course but I am looking for a study book or guide that has the info that I can just read and re-read daily to get the information. Can you make a recommendation?

By: Kip Drake

Kip Drake — Tue, 19 Jan 2010 21:59:41 +0000

I have a quick question for you. Is there an online test prep course offered? I have already done the required 20 hours but want a test prep course before I take the exam. Just let me know when you get a chance.

Thanks!

By: Jillayne Schlicke

Jillayne Schlicke — Thu, 14 Jan 2010 21:47:43 +0000

Hi Kip,

Thanks for stopping by NAMF.

NAMF also offers exam prep study materials! Watch this site in the weeks to come:

http://www.loanoriginatorexamprep.com

The SAFE required 20 Hour Prelicensing course can definitely also work as an exam prep course. You’re not required to take the 20 hour course before you try to pass the test….however, I highly recommend taking the course first. Especially if you’re right out of college with no experience.

The federal law was put in place to mandate education BEFORE you start originating so have your fellow LO trainees be sure to take the pre-licensing class first. Their test scores on the first try should be much higher.

By: Kip Drake

Kip Drake — Thu, 14 Jan 2010 21:36:35 +0000

I’m so glad someone finally published this information. I’ve been searching for it for weeks! This % makes a lot of us feel better. Our company is having the majority of it’s employees take the test. Some of us are struggling with it since we are just out of college and are not loan originators. Trying to pass is very tough. The majority of us didn’t pass on the first attempt. If you’re a loan originator you should be able to pass it in a couple of tries.

Our company alone has probably done over 200 tests when you count loan originator’s, assistant loan originator’s, and then all the rest of us just working for the company who are taking it, and then re-taking it 2 or 3 times. Personally I think 70% should be needed to pass, 75% is not a walk in the park. It’s 100 questions, but they randomly throw out 10 questions. So you need 68 out of 90 correct.

If you read the sample questions on NMLS they are very basic and simplified. The actual exam is very wordy, and very tricky. You really have to know your material inside and out to pass. We’ve all had to study countless hours to try and pass it. Good luck to those who still have to take it!

By: Kimberly Petersn

Kimberly Petersn — Thu, 31 Dec 2009 18:54:47 +0000

I thought the test was average, not too hard not too easy. Just takes some studying which is good for everyone. I too think that the state requirements are good so that it eliminates the fly by nights that jumped in to make a quick buck.

By: Pauline Martin Ferber

Pauline Martin Ferber — Thu, 31 Dec 2009 01:02:05 +0000

I did not find the test too easy. Anyone who spent time studying should have been able to pass the test. Professionals who are proafessionals are going to be the best in the business because they care how and what they do for their customers and others in the business.

By: Harold Burton

Harold Burton — Thu, 31 Dec 2009 00:19:13 +0000

As a professional I would like to assure myself that my counterparts are profesional as well. Unless I’m missing the grading curve 31% of the professional’s that take the test failed.

I think it is great that all my fellow mortgage professional have a national standard to measured with.

I would also think that with the high unemployment rate professionals would take this test seriously and study. Which on the other hand would account for the high pass rate.

Anyone like to calculate a 5/1 arm on a HP 12C?(-: Those where the days.

By: Kelly Fiscus

Kelly Fiscus — Wed, 30 Dec 2009 22:48:43 +0000

It is nice to read that someone thought the test not too easy. Again I think time will tell how hard the tests are, after all it was a short time period.

By: Chris Yanke

Chris Yanke — Wed, 30 Dec 2009 20:23:54 +0000

The test is not too easy and I found it to be a challenge even after 12 years of being in this industry. In terms of process though it seems like a natural step in the “weeding out” process to formalize our industry. Before 2006 in Washington you needed only a pulse to start in this industry. Now there are measures (albeit basic and slightly ineffective) that require background knowledge of candidates and moves the term “money motivated” a lot further to the back of the hiring process.

By: Kelly Fiscus

Kelly Fiscus — Wed, 30 Dec 2009 19:12:10 +0000

Test percentages are just percentages. Some people are really great test takers and some aren’t. Yes you must have a certain amount of information to pass a test, however test anxiety can cause the most experience person to fail. Is the test to easy?? Only time will tell, and yes it would be nice to know how much experience on average the test takers had.

By: Todd Morgan

Todd Morgan — Wed, 30 Dec 2009 16:11:59 +0000

When I started it was early 2004 and anyone who could answer the phone could originate a loan. When they started opening guidelines and values started climbing it set the stage for a lot of unsavory characters jumping in and giving us a bad name due to the lure of easy money. I have to agree with everyone else thus far, the LO’s and brokers still standing are the real deal. Whether we’ve been doing it for 5 or more years or recently started we have a demonstrated ability to operate within complex and conitinually changing compliance environment. They keep changing the rules on us. Not that this is bad but it is more complicated and it’s all being done in the name of protecting our clients. Personally, I was big fan of state licensing requirements because it instantly got rid of anyone who had commited past financial crimes or fraud and required an actual knowledge of the laws and ethics regarding real estate finance. Can’t really complain about this one at all because everyone still in business is doing things by the book or they wouldn’t be in business.

By: Arash Fiuzi

Arash Fiuzi — Wed, 30 Dec 2009 06:58:01 +0000

Most of the guys that are in the business have been around for more than 5 years. Thats because the others went back to selling cars, waiting tables or doing whatever they were doing. Too bad all these fly by nighters that are gone gave brokers such a bad name. To tell you the truth, the average bank loan officer is not very knowledgeable.