Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › MORTGAGE LOAN ORIGINATOR LICENSING › Section 208-620-710 - Mortgage loan originator- Licensing

Current through Register Vol. 24-14, July 15, 2024
(1)
Must I have a license to act as a mortgage loan originator for a consumer
				loan company?
Yes. You must not engage in the business of a mortgage
				loan originator without first obtaining and maintaining annually a license
				under this act. You must register with and maintain a valid unique identifier
				issued by the NMLS.
(2)
How
				do I apply for a mortgage loan originator license?
Your application
				consists of filing an online application through the NMLS and providing
				Washington specific requirements directly to DFI. You must pay an application
				fee and filing fee through the NMLS. In addition to supplying the application
				information, both you and the company intending to sponsor you must be in good
				standing with the department. See also WAC 208-620-715 Temporary authority to
				originate loans.
(3)
What are
				the eligibility requirements to become a licensed mortgage loan
				originator?
(a)
Be eighteen years
				or older.
(b)
Demonstrate financial responsibility.
For the purposes of this
				section, an applicant has not demonstrated financial responsibility when the
				applicant shows disregard in the management of his or her financial condition.
				A determination that an individual has shown disregard in the management of his
				or her financial condition may include, but is not limited to, an assessment
				of: Your credit report, current outstanding judgments, except judgments solely
				as a result of medical expenses; current outstanding tax liens or judgments or
				other government liens or filings; foreclosures within the last three years; or
				a pattern of seriously delinquent accounts within the past three years.
				Specifically, you are not eligible to receive a loan originator license if you
				have one hundred thousand dollars or more of tax liens against you at the time
				of application.
(c)
Complete
				prelicensing education.
You must complete prelicensing education before
				submitting an application. See WAC 208-620-720.
(d)
Prove your identity.
You
				must provide information to prove your identity.
(e)
Pass a licensing test.
You
				must take and pass the NMLS test that assesses your knowledge of the mortgage
				business and related regulations at the federal and state level. See WAC
				208-620-725.
(f)
Provide a
				bond.
(i) If you are employed by a
				company that is exempt from licensing, or uses a bond substitute, you must
				obtain and maintain an individual bond based on the volume of your mortgage
				loan origination activity. By March 1st of each year, you must determine your
				required bond amount and provide DFI with proof of having an adequate bond. The
				bond must be in the following amount:
1. Zero to twenty million in loans originated:
$20,000
2. Twenty million to thirty million:
$30,000
3. Thirty million to forty million:
$40,000
4. Forty million and above:
$50,000
(ii)
				If you are employed by a company that is exempt and is a nonprofit housing
				organization making loans under housing programs that are funded in whole or in
				part by federal or state programs with the primary purpose of assisting
				low-income borrowers with purchasing or repairing housing or for the
				development of housing for low-income Washington state residents, the bond must
				be in the following amounts:
1. Zero to fifty million in loans originated:
$10,000
2. Fifty +:
$20,000
(g)
File a quarterly call
				report.
Reserved.