Uniform State Content Explained: The SAFE Act and the Model State Law
Uniform State Content (UST) is 11% of the SAFE MLO Test. It tests the SAFE Act's licensing standards and the CSBS/AARMR Model State Law that states used to adopt them. The test stays state-neutral: think 'what does the Model State Law say?'
Licensing standards (SAFE Act and Regulation H)
| Standard | Rule |
|---|---|
| Who needs a license | Anyone who takes applications and offers or negotiates terms for pay, unless registered or exempt |
| Felonies | None in the 7 years before applying; never a fraud-type felony |
| Education | 20 hours PE (3/3/2/12); 8 hours CE each year (3/2/2/1) |
| Test | 75% to pass; 30-day waits between the first three tries; 6 months after three failures |
| Financial | Net worth, surety bond or state fund |
| Temporary authority | Up to 120 days if the application stays incomplete (12 U.S.C. 5117) |
The regulator's powers
- Examine books and records and interview staff; charge exam costs to the licensee.
- Issue subpoenas, cease-and-desist orders and summary suspensions.
- Deny, suspend, revoke or condition licenses; bar individuals; impose civil penalties (up to $25,000 per violation under the Model State Law).
Prohibited acts
- Fraud, misrepresentation, unfair or deceptive practices
- Unlicensed activity
- Advertising terms not actually available
- 'Best efforts' fees with no loan obtained
- Influencing an appraiser
- Requiring insurance above replacement cost
- Failing to account for borrower funds
- Failing to comply with any applicable state or federal law
Practice both UST topics: SAFE Act & licensing and state regulation.
Frequently asked questions
What is Uniform State Content?
The 11% section of the SAFE MLO Test based on the SAFE Act and the CSBS/AARMR Model State Law.
Does UST test my state's specific laws?
No. It tests the common, state-neutral rules. States may add their own education and licensing requirements.
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