Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › DISCLOSURE AND OTHER OBLIGATIONS › Section 208-620-510 - What are my disclosure obligations to consumers?

Current through Register Vol. 24-14, July 15, 2024
Some types of loans may not be covered by the integrated
				  TILA-RESPA rule. Examples include: Reverse mortgages and HELOCs. Creditors
				  originating these types of mortgages must continue to use, as applicable, the
				  federal Good Faith Estimate, HUD-1, and Truth in Lending disclosures. Creditors
				  are not prohibited from using the integrated TILA-RESPA disclosures. However,
				  they cannot replace the required federal Good Faith Estimate, HUD-1, and Truth
				  in Lending disclosures.
(1)
Content requirements.
In addition to complying with the applicable
				disclosure requirements in the federal and state statutes referred to in WAC
				208-620-505 if the loan will be secured by a lien on real property, you must
				also provide the borrower or potential borrower an estimate of the annual
				percentage rate on the loan and a disclosure of whether or not the loan
				contains a prepayment penalty within three business days of receipt of a loan
				application.
(2)
Proof of
				delivery.
The licensee must be able to prove that the disclosures under
				subsection (1) of this section were provided within the required time frames.
				For purposes of determining the timeliness of the required early disclosures,
				the department may use the date of the credit report or may use the date of an
				application received from a broker. In most cases, proof of mailing is
				sufficient evidence of delivery. If the licensee has an established system of
				disclosure tracking that includes a disclosure and correspondence log,
				checklists, and a reasonable system for determining if a borrower did receive
				the documents, the licensee will be presumed to be in compliance.
(3)
Residential mortgage loans-Rate
				locks.
Within three business days of receipt of a residential mortgage
				loan application you must provide the borrower with the following disclosure
				about the interest rate:
(a) If a rate lock
				agreement has not been entered into, you must disclose to the borrower that the
				disclosed interest rate and terms are subject to change. Compliance with the
				federal good faith estimate or loan estimate is considered
				compliance.
(b) If a rate lock
				agreement has been entered into, you must disclose to the borrower whether the
				rate lock agreement is guaranteed and if so, if guaranteed by a company other
				than your company, you must provide the name of that company, whether and under
				what conditions any rate lock fees are refundable to the borrower, and:
(i) The number of days in the rate lock
				period;
(ii) The date of the rate
				lock and expiration date of the rate lock;
(iii) The rate of interest locked;
(iv) Any other terms and conditions of the
				rate lock agreement; and
(v) The
				date the rate lock agreement was provided to the borrower.
(c) If the borrower wants to lock the rate
				after the initial disclosure, you must provide a rate lock agreement within
				three business days of the rate lock date that includes the items from (b) of
				this subsection.
(d) Prior to
				closing, you must disclose payment of a rate lock as a cost in Block 2 of the
				federal good faith estimate or in "Loan Cost" on the loan estimate. At closing,
				you must disclose payment of a rate lock in section 800 "Items Payable" on a
				HUD-1 or in "Loan Cost" on the closing disclosure.
(e) You may rely on a broker's rate lock
				agreement if it complies with this subsection.