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An MLO who has been inactive for 2 years wants to return to mortgage origination. What NMLS requirement must they satisfy?

Correct Answer

B) Retake and pass the SAFE MLO test

Under SAFE Act requirements, MLOs who have been inactive for more than 5 years must retake and pass the SAFE MLO test. However, many states have more stringent requirements, and some require retesting after shorter periods of inactivity, such as 2 years, making option B the most comprehensive answer.

Answer Options
A
Complete 8 hours of continuing education for each year inactive
B
Retake and pass the SAFE MLO test
C
Pay additional reactivation fees to each licensing state
D
Complete a new background check and credit report

Why This Is the Correct Answer

Under SAFE Act requirements, MLOs who have been inactive for more than 5 years must retake and pass the SAFE MLO test. However, many states have more stringent requirements, and some require retesting after shorter periods of inactivity, such as 2 years, making option B the most comprehensive answer.

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