(a) Generally.

1. (1) In order to meet the written test requirement of Arkansas Code § 23-39-505(b)(3), an individual applying to be a loan officer licensed under the Fair Mortgage Lending Act, Arkansas Code § 23-39-501 et seq., shall pass, in accordance with the standards established under this subsection:

   1. (A) A qualified written national test developed by the NMLS&R; and
   2. (B) A qualified written state test developed by the Securities Commissioner.
2. (2) Both the national test and the state test shall be administered by a test provider approved by the NMLS&R based upon reasonable standards.

(b) Qualified test. The qualified written tests for purposes of subsection (a) of this section shall adequately measure the applicant’s knowledge and comprehension in appropriate subject areas, including:

1. (1) Ethics;
2. (2) Federal law and regulation pertaining to mortgage loan origination;
3. (3) State law and regulation pertaining to mortgage loan origination; and

4. (4) Federal and state law and regulation, including instruction on:

   1. (A) Fraud;
   2. (B) Consumer protection;
   3. (C) The nontraditional mortgage loan marketplace; and
   4. (D) Fair lending issues.

(d) Testing location. Nothing in this section shall prohibit a test provider approved by the NMLS&R from providing a test at the location of:

1. (1) The employer of the applicant;
2. (2) The location of any subsidiary or affiliate of the employer of the applicant; or
3. (3) Any entity with which the applicant holds an exclusive arrangement to conduct the business of a loan officer.

(e) Minimum competence.

1. (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.
2. (2) Initial retests. An individual may retake the national or state component of the written test three (3) consecutive times with each consecutive testing occurring at least thirty (30) days after the preceding test.
3. (3) Subsequent retests. After failing three (3) consecutive tests, an individual shall wait at least six (6) months before taking the test again.

(f) Retests after lapse of license.

1. (1) A licensed loan officer who fails to maintain a valid license for a period of two (2) years or longer shall retake the national and state components of the test.
2. (2) If a loan officer maintains a valid license in another jurisdiction for this two-year period, only the state portion of the test shall be taken.