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 › LOAN ORIGINATORS › Section 208-660-300 - Loan originators-General

Current through Register Vol. 24-14, July 15, 2024
(1)
May I
				work as a loan originator for more than one mortgage broker?
Yes.
(2)
How do I obtain
				approval to work for more than one mortgage broker?
Using the NMLS, the
				company will submit a sponsorship request. The department will notify you and
				others associated with your license upon approval of your request. The NMLS
				will charge a fee for the additional relationship. See also WAC
				208-660-550.
(3)
If I work as
				a loan originator for more than one mortgage broker, may I take an application
				from a borrower without identifying one specific mortgage broker?
No.
				You may take an application for only one mortgage broker at a time in any one
				transaction. Prior to presenting yourself to a specific borrower as licensed to
				originate mortgage loans, you must state who you represent. You must clearly
				identify the mortgage broker by name and address on the application, on all
				disclosures, authorization forms, and other material provided to the borrower.
				There must be no confusion by the borrower as to which mortgage broker you are
				representing at any given time.
(4)
May I work from any location when I am a licensed loan originator?
No. You can only work from a licensed location unless you conduct activity
				under the act from your residence pursuant to WAC 208-660-505.
(5)
May a loan originator transfer loan
				files to a mortgage broker other than the mortgage broker the loan originator
				is associated with?
No. Only the borrower may submit a written request
				to the licensed mortgage broker to transmit the borrower's selected information
				to another mortgage broker or lender. The licensed mortgage broker must
				transmit the information within five business days after receiving the
				borrower's written request.
(6)
Who owns loan files?
Loan files are the property of the mortgage
				broker named on the loan application and the mortgage broker must keep the
				original files and documents.
(7)
May I act as a loan originator and a real estate agent or with someone in
				the same real estate agency in the same transaction or for the same borrower in
				different transactions?
Yes, for required disclosure language see RCW
				    19.146.0201(14).
(8)
As a
				loan originator, may I be paid directly by the borrower for my services?
No. As a loan originator, you may not be paid any compensation or fees directly
				by the borrower.
(9)
May a
				loan originator charge the borrower a fee, commission, or other compensation
				for preparing, negotiating, or brokering a loan for the borrower?
No. A
				loan originator may not charge the borrower a fee, commission, or compensation
				of any kind in connection with the preparation, negotiation, and brokering of a
				residential mortgage loan.
(10)
May a loan originator bring a lawsuit against a borrower for the
				collection of compensation?
No. Only licensed mortgage brokers, or
				exempt mortgage brokers, may bring collection actions against borrowers to
				collect compensation.
(11)
May I work as a licensed loan originator for a mortgage broker located
				out of the state?
Yes. You may originate loans for any mortgage broker
				who sponsors you and who is licensed under Washington law.
(12)
May a licensed loan originator
				hire employees or independent contractors to assist in the mortgage broker
				licensee's activities?
No. Only the mortgage broker licensee can have
				employees or independent contractors. This prohibition against loan originators
				hiring employees or independent contractors includes clerical or administrative
				personnel whose work is related to the mortgage broker licensee's activities,
				and loan processors.
(13)
Do
				loan processors have to be licensed as loan originators?
W-2 employee
				loan processors are not required to have a loan originator license provided
				they work under the supervision and instruction of a licensed mortgage loan
				originator (including the designated broker) and do not hold themselves out as
				able to conduct the activities of a licensed mortgage broker or loan
				originator. Independent contractor loan processing companies must be licensed
				as a mortgage broker, have a designated broker, and have at least one licensed
				mortgage loan originator (who can be the designated broker). The W-2 employee
				loan processors are not then required to be licensed mortgage loan originators.
				Individual independent contractor loan processors must be licensed as mortgage
				loan originators, be sponsored by a licensed mortgage broker, and be supervised
				by that licensee's licensed mortgage loan originator (including the designated
				broker).
(14)
May loan
				processors work on files from an unlicensed location?
A loan processor
				may work on loan files from an unlicensed location under the following
				circumstances:
(a) The loan files are in
				electronic format and the loan processor accesses the files directly from the
				licensed mortgage broker's main computer system. The loan processor may not
				maintain any electronic files on any computer system other than the system
				belonging to the licensed mortgage broker.
(b) The loan processor does not conduct any
				of the activities of a licensed loan originator.
(c) The licensed mortgage broker must have
				safeguards in place for the computer system that safeguards borrower
				information.