Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-660 - Mortgage brokers and loan originators-Licensing › DIRECTOR AND DEPARTMENT POWERS › Section 208-660-520 - Director and department powers-Investigation authority

Current through Register Vol. 24-14, July 15, 2024
(1)
What is an investigation?
An
						investigation is an inquiry to determine compliance with the act and rules, to
						assess allegations of wrongdoing, or to evaluate the licensing qualifications
						of persons subject to the act. The inquiry may involve extensive research, fact
						gathering, the issuance of directives and subpoenas, witness interviews, and
						financial and legal analysis. Depending on the results of these efforts, an
						investigation may result in the pursuit of an enforcement action. An
						investigation may proceed at the same time as other matters and may continue
						during an enforcement action.
(2)
How often may the department investigate my mortgage broker or loan
						originator operations?
For the purpose of investigating violations or
						complaints, the department may investigate your business as often as necessary
						to carry out the purpose of the act.
(3)
Will the department give advance
						notice before requiring me to make my books and records available for its
						investigation?
The department is not required to give you advance notice
						before an investigation. However, the department may provide advance notice
						before an investigation if doing so would be in the best interests of all
						parties involved, including the department.
(4)
From whom may the department obtain
						information in an investigation?
The department may obtain information
						from any person whose information may be pertinent to the loans, business, or
						subject matter of an investigation.
(5)
How may the department obtain
						information during an investigation?
The department may direct,
						subpoena, or order a person to submit to a deposition, or produce written
						information.
(6)
What
						information may the department obtain during an investigation?
The
						department may obtain books, accounts, records, files, and any other documents
						the department deems relevant to the investigation.
(7)
What businesses may the department
						investigate?
The department may investigate the business of any person
						who is engaged in the business of mortgage brokering, whether the person is a
						licensee or whether the person acts or claims to act under, or without the
						authority of, the act.
(8)
May the director retain professionals or specialists to assist in an
						investigation, and if so, will I have to pay for those services?
Yes.
						The department may hire attorneys, accountants or other professionals as needed
						to conduct or assist in an investigation. The cost for these services will be
						assessed in accordance with WAC
						208-660-550(5),
						Investigations.
(9)
When may
						the department charge an investigation fee?
The department may charge an
						investigation fee when it investigates the books and records of any
						licensee.
(10)
Are there
						circumstances in which the department will investigate a licensee but will not
						charge an investigation fee?
Yes. The department will not charge an
						investigation fee in a complaint investigation if it is determined that no
						violation occurred, or when the licensee implements a remedy satisfactory to
						the complainant and the department, and no department order has been
						issued.
(11)
How is the
						amount of the investigation fee determined?
The amount of the
						investigation fee is the number of hours expended by the examiner related to
						the investigation multiplied by an hourly rate established by the department.
						See WAC 208-660-550 Department fees and
						costs.
Statutory Authority:
								RCW
								   43.320.040,
								19.146.223, 2006 c 19. 06-23-137,
								§
											208-660-520, filed 11/21/06,
								effective 1/1/07.