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A mortgage originator test is required to become a licensed lender in many countries. Candidates must undergo training and pass an exam covering laws, loan products, ethics, and scenarios. Passing the test results in a license, and continuing education is required to keep it active.
A mortgage originator test is an exam that anyone wishing to originate mortgages must pass. In many countries, government agencies issue mortgage licenses to people who pass the mortgage originator test, and only people who hold this license can work as a lender. The test typically includes information related to laws and loan products.
Before taking a mortgage originator test, a candidate will typically need to undergo a mortgage training course. Potential lenders are taught about lending products and ethics during the training course. Banks and finance companies typically pay for employees to attend these training sessions, but self-employed workers have to cover their own costs. At the conclusion of the training class, candidates typically take a practice test that covers material similar to the information included in the actual mortgage originator test.
A mortgage test is normally divided into several different sections, and candidates need to answer a certain number of questions correctly in each section in order to pass the exam. The legal section of the test contains questions that test applicants’ knowledge of rules relating to fee assessment, the way fees are calculated, and prohibitions against discriminating against loan applicants on the basis of race, religion, or gender. In the ethics section of the exam, candidates are typically presented with fictional scenarios and must specify how mortgage originators should handle each situation. To score well in the ethics section, candidates must demonstrate an understanding of how to act in the best interests of potential customers, rather than focusing on making sales.
After taking the mortgage originator test, exam candidates often have to wait a few weeks before finding out if they have passed the test. In some circumstances, people who fail the exam are given the opportunity to retake it immediately. People who need to retake the test usually must pay a fee to do so, and in some countries people who fail must also retake the mortgage exam class.
People who pass the exam receive a license and can work as mortgage originators or brokers. Regulatory authorities often require active brokers to take continuing education courses annually to keep their license active. Mortgage creators who allow their license to lapse can usually be reinstated if they take the necessary continuing education classes and pay a reinstatement fee. Lenders who originate residential and commercial property loans are typically not required to obtain a mortgage license or take the origination test.
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