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 208-620-700 - Mortgage loan originator-General

Current through Register Vol. 24-14, July 15, 2024
(1)
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 208-620-660.
(2)
May I transfer loan files to
				another licensed entity?
No. Loan files are the property and
				responsibility of the company named on the loan application. Only the borrower
				may submit a written request to the company to transmit the borrower's selected
				information to another entity. The company must transmit the information within
				five business days after receiving the borrower's written request.
(3)
May I act as a loan originator and
				a real estate agent in the same transaction or for the same borrower in
				different transactions?
Yes, you may be both the loan originator and real estate
				  broker or salesperson in the same transaction, or for the same borrower in
				  different transactions. When either of these occur, you must provide to the
				  borrower the following written disclosure:
"THIS IS TO GIVE YOU NOTICE THAT I OR ONE OF MY ASSOCIATES
				  HAVE/HAS ACTED AS A REAL ESTATE BROKER OR SALESPERSON REPRESENTING THE
				  BUYER/SELLER IN THE SALE OF THIS PROPERTY TO YOU. I AM ALSO A LOAN ORIGINATOR
				  AND WOULD LIKE TO PROVIDE MORTGAGE SERVICES TO YOU IN CONNECTION WITH YOUR LOAN
				  TO PURCHASE THE PROPERTY.
YOU ARE NOT REQUIRED TO USE ME AS A LOAN ORIGINATOR IN
				  CONNECTION WITH THIS TRANSACTION. YOU ARE FREE TO COMPARISON SHOP AND TO SELECT
				  ANY MORTGAGE BROKER OR LENDER OF YOUR CHOOSING."
(4)
As a loan originator, may I be paid
				directly by the borrower for my services?
No. You may not be paid any
				compensation or fees directly by the borrower.
(5)
May I charge the borrower a fee,
				commission, or other compensation for preparing, negotiating, or brokering a
				loan for the borrower?
No. You may not charge the borrower a fee,
				commission, or compensation of any kind in connection with the preparation,
				negotiation, or brokering of a residential mortgage loan.
(6)
May I bring a lawsuit against a
				borrower for the collection of compensation?
No. Only the company may
				bring collection actions against borrowers to collect compensation.
(7)
May I work as a licensed loan
				originator for a licensed consumer loan company located out of the
				state?
Yes. You may originate loans for any company you are sponsored by
				as long as you work from a licensed location or your residence pursuant to WAC
				208-620-660. See subsection (1) of this section.
(8)
May I hire employees or independent
				contractors to assist me?
No. Only the consumer loan company can hire
				employees or independent contractors to work for the company. This prohibition
				against loan originators hiring employees or independent contractors includes
				clerical or administrative personnel and loan processors and underwriters whose
				work is related to the consumer loan company's activities.
(9)
Do loan processors and underwriters
				have to be licensed as loan originators?
W-2 employee loan processors
				and underwriters are not required to have a loan originator license provided
				they work under the supervision and instruction of an individual licensed or
				exempt from licensing and do not hold themselves out as able to conduct the
				activities of a loan originator.
(10)
May loan processors and
				underwriters work on files from an unlicensed location?
A loan processor
				or underwriter 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 or underwriter accesses the
				files directly from the licensee's main computer system. The loan processor or
				underwriter may not maintain any electronic files on any computer system other
				than the system belonging to the licensee;
(b) The loan processor or underwriter does
				not conduct any of the activities of a licensed loan originator;
(c) The licensee must have safeguards in
				place for the computer system that safeguards borrower information;
				and
(d) The loan processor or
				underwriter is not a licensed mortgage loan originator who supervises other
				loan processors or underwriters.