Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › Section 208-620-010 - Definitions

Current through Register Vol. 24-14, July 15, 2024
The definitions set forth in this section apply throughout this
				chapter unless the context clearly requires a different meaning.
(1) "Act" means the Consumer Loan Act,
			 chapter 31.04 RCW.
(2) "Advertise,
			 advertising, and advertising material" means any form of sales or promotional
			 materials used in connection with the business. Advertising material includes,
			 but is not limited to, newspapers, magazines, leaflets, flyers, direct mail,
			 indoor or outdoor signs or displays, point-of-sale literature or educational
			 materials, other printed materials; radio, television, public address system,
			 or other audio broadcasts; internet pages, social media, instant messages, or
			 electronic bulletin boards.
(3)
			 "Annual percentage rate" has the same meaning as defined in Regulation Z, 12
			 C.F.R. Part 1026, implementing the Truth in Lending Act.
(4) "Application" means the submission of a
			 borrower's financial information in anticipation of a credit decision relating
			 to a residential mortgage loan, which includes the borrower's name, monthly
			 income, Social Security number to obtain a credit report, the property address,
			 an estimate of the value of the property, and the mortgage loan amount sought.
			 An application may be submitted in writing or electronically and includes a
			 written record of an oral application. If the submission does not state or
			 identify a specific property, the submission is an application for a
			 prequalification and not an application for a residential mortgage loan under
			 this part. The subsequent addition of an identified property to the submission
			 converts the submission to an application for a residential mortgage
			 loan.
(5) "Bank Secrecy Act" means
			 the Bank Secrecy Act (BSA),   31 U.S.C. 1051   et seq. and 31 C.F.R. Part
			 103.
(6) "Bond substitute" means
			 unimpaired capital, surplus and qualified long-term subordinated
			 debt.
(7) "Business day" means
			 Monday through Friday excluding federally recognized bank holidays.
(8) "Commercial context" or "commercial
			 purpose" means actions taken for the purpose of obtaining anything of value for
			 oneself, or for an entity or individual for which the individual acts, rather
			 than exclusively for public, charitable, or family purposes.
(9) "Common ownership" exists if an entity or
			 entities possess an ownership or equity interest of five percent or more in
			 another entity.
(10) "Creditor" has
			 the same meaning as in the Truth in Lending Act,  15 U.S.C. 1602(f)  and
			 Regulation Z,  12 C.F.R. Part 1026.
(11) "Depository Institutions Deregulatory
			 and Monetary Control Act" means the Depository Institutions Deregulatory and
			 Monetary Control Act of 1980 (DIDMCA),  12 U.S.C. Sec. 1735f-7a.
(12) "Dwelling" means the same as in
			 Regulation Z implementing the Truth in Lending Act which is a residential
			 structure that contains one to four units, whether or not that structure is
			 attached to real property. The term includes an individual condominium unit,
			 cooperative unit, mobile or manufactured home, and trailer, if it is used as a
			 residence. See  12 C.F.R. Sec. 1026.2.
(13) "Equal Credit Opportunity Act" means the
			 Equal Credit Opportunity Act (ECOA),  15 U.S.C. Sec. 1691  and Regulation B,  12
			 C.F.R. Part 1002.
(14) "Fair Credit
			 Reporting Act" means the Fair Credit Reporting Act (FCRA),  15 U.S.C. Sec. 1681 et seq.
(15) "Fair Debt Collection
			 Practices Act" means the Fair Debt Collection Practices Act,  15 U.S.C. Sec. 1692,  12 C.F.R. Part 1006.
(16)
			 "Federal Trade Commission Act" means the Federal Trade Commission Act,  15 U.S.C. Sec. 45(a).
(17) "Filing"
			 means filing, recording, releasing or reconveying mortgages, deeds of trust,
			 security agreements or other documents, or transferring certificates of title
			 to vehicles.
(18)
			 "Gramm-Leach-Bliley Act (GLBA)" means the Financial Modernization Act of 1999,
			  15 U.S.C. Sec. 6801-6809, and the GLBA-mandated Federal Trade Commission (FTC)
			 privacy rules, at 16 C.F.R. Parts 313-314.
(19) "Higher education institution" means a
			 private, nonprofit educational institution, the main campus of which is
			 permanently situated in the state, which is open to residents of the state,
			 which neither restricts entry on racial or religious grounds, which provides
			 programs of education beyond high school leading at least to the baccalaureate
			 degree, and which is accredited by the Northwest Association of Schools and
			 Colleges or by an accrediting association recognized by the council for higher
			 education. RCW     28B.07.020(4).
(20)
			 "Home Mortgage Disclosure Act" means the Home Mortgage Disclosure Act (HMDA),
			  12 U.S.C. Secs. 2801 through 2810  and  12 C.F.R. Part 1003  (formerly Part
			 203).
(21) "Immediate family
			 member" means a spouse, child, sibling, parent, grandparent, or grandchild.
			 This includes stepparents, stepchildren, stepsiblings, and adoptive
			 relationships.
(22) "Lender" means
			 any person that extends money to a borrower with the expectation of being
			 repaid.
(23) "License number" means
			 your NMLS unique identifier displayed as prescribed by the director. Some
			 examples of the way you may display your license number are: NMLS ID 12345,
			 NMLS 12345, NMLS #12345, MB-12345, or MLO-12345.
(24) "Licensed location" means a main office
			 or branch office, including an individual loan originator's residence, where
			 the licensee conducts business under the act with Washington residents or
			 Washington residential real estate and the licensee has obtained a main or
			 branch license through NMLS for that location.
(25) "Live check" means a loan solicited
			 through the mail in the form of a check, which, when endorsed by the payee,
			 binds the payee to the terms of the loan agreement contained on the
			 check.
(26) "Loan originator" means
			 the same as mortgage loan originator.
(27) "Loan originator's residence" means a
			 loan originator's primary or secondary residence located in the United
			 States.
(28) "Long-term
			 subordinated debt" means for the purposes required in RCW     31.04.045 outstanding
			 promissory notes or other evidence of debt with initial maturity of at least
			 seven years and remaining maturity of at least two years.
(29) "Material litigation" means proceedings
			 that differ from the ordinary routine litigation incidental to the business.
			 Litigation is ordinary routine litigation if it ordinarily results from the
			 business and does not deviate from the normal business litigation. Litigation
			 involving five percent of the licensee's assets or litigation involving the
			 government would constitute material litigation.
(30) "NMLS" means the Nationwide Multistate
			 Licensing System and Registry, Nationwide Mortgage Licensing System, NMLSR, or
			 such other name or acronym as may be assigned to the multistate system
			 developed by the Conference of State Bank Supervisors and the American
			 Association of Residential Mortgage Regulators and owned and operated by the
			 state regulatory registry, LLC, or any successor or affiliated entity, for the
			 licensing and registration of persons in the mortgage and other financial
			 services industries.
(31)
			 "Out-of-state licensee" means a licensee that does not maintain a physical
			 presence within the state, or a licensee that maintains headquarters or books
			 and records outside Washington.
(32) "Principal amount" means the loan amount
			 advanced to or for the direct benefit of the borrower.
(33) "Principal balance" means the principal
			 amount plus any allowable origination fee.
(34) "RCW" means the
Revised Code of
			 Washington.
(35) "Real
			 estate brokerage activity" means any activity that involves offering or
			 providing real estate brokerage services to the public, including (a) acting as
			 a real estate agent or real estate broker for a buyer, seller, lessor, or
			 lessee of real property; (b) bringing together parties interested in the sale,
			 purchase, lease, rental, or exchange of real property; (c) negotiating, on
			 behalf of any party, any portion of a contract relating to the sale, purchase,
			 lease, rental, or exchange of real property, other than in connection with
			 providing financing with respect to such a transaction; (d) engaging in any
			 activity for which a person engaged in the activity is required to be
			 registered or licensed as a real estate agent or real estate broker under any
			 applicable law; and (e) offering to engage in any activity, or act in any
			 capacity, described in (a) through (d) of this subsection.
(36) "Real Estate Settlement Procedures Act"
			 means the Real Estate Settlement Procedures Act (RESPA),  12 U.S.C. Secs. 2601 et seq., and Regulation X,  12 C.F.R. Part 1024.
(37) "Records" mean books, accounts, papers,
			 records and files, no matter in what format they are kept, which are used in
			 conducting business under the act.
(38) "Referring a delinquent loan to
			 foreclosure" means taking any step in furtherance of foreclosure. Examples
			 include, but are not limited to: Sending a referral to a foreclosure trustee or
			 attorney inside or outside of the servicing entity requesting they begin the
			 foreclosure process; making a record in written or electronic form that flags,
			 comments, blocks, suspends or in any way indicates in the electronic record of
			 a mortgage loan that foreclosure has begun; any such marking of an electronic
			 record that impairs the record in a way that payments will not be applied or
			 will be routed into a suspense account.
(39) "State" means the state of
			 Washington.
(40) "Student education
			 loan borrower" means:
(a) Any resident of this
			 state who has received or agreed to pay a student education loan; or
(b) Any person who shares responsibility with
			 such resident for repaying the student education loan.