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An MLO candidate fails their state test twice, then moves to a different state before taking a third attempt. What testing requirements apply in the new state?

Correct Answer

B) Their previous failures count toward the three-attempt limit

Test failure history follows the individual, not the state. Previous failures count toward the three consecutive failure limit regardless of which state the candidate moves to, as this is tracked in the NMLS system.

Answer Options
A
They start fresh with no previous failure history
B
Their previous failures count toward the three-attempt limit
C
They must wait 6 months before testing in the new state
D
They must retake the national component in the new state

Why This Is the Correct Answer

Test failure history follows the individual, not the state. Previous failures count toward the three consecutive failure limit regardless of which state the candidate moves to, as this is tracked in the NMLS system.

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