Guam § 36308 - Testing of Loan Originators.

§ 36308. Testing of Loan Originators.

(a) Testing of Loan Originators, General. In order to meet the written

test requirement referred to in § 36306 (e) of this Act, an individual shall

pass, in accordance with the standards established under this Subsection, a

qualified written test developed by the Nationwide Mortgage Licensing

System and Registry and administered by a test provider approved by the

Nationwide Mortgage Licensing System and Registry based upon reasonable

standards.

(b) Qualified Test. A written test shall not be treated as a qualified

written test for purposes of Subsection (a) of this Section, unless the test

adequately measures the applicant’s knowledge and comprehension in

appropriate subject areas, including:

(1) Ethics;

(2) Federal law and regulation pertaining to mortgage

origination;

(3) Guam law and regulation pertaining to mortgage origination;

(4) Federal and Guam law and regulation, including instruction

on fraud, consumer protection, the nontraditional mortgage

marketplace, and fair lending issues.

(c) Testing Location. 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 employer of 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 to conduct the business of a mortgage loan originator.

(d) Minimum Competence:

(1) Passing Score. An individual shall not be considered to have

passed a qualified written test unless the individual achieves a test score

of not less than seventy-five percent (75%) correct answers to

questions.

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(2) Initial Retests. An individual may retake a test three (3)

consecutive times with each consecutive taking occurring at least thirty

(30) days after the preceding test.

(3) Subsequent Retests. After failing three (3) consecutive tests,

an individual shall wait at least six (6) months before taking the test

again.

(4) Retest After Lapse of License. A licensed mortgage loan

originator who fails to maintain a valid license for a period of five (5)

years or longer shall retake the test, not taking into account any time

during which such individual is a registered mortgage loan originator.