reglab/statecodes huggingface dataset:
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-490 - "Guidance" for credit unions › Section 208-490-020 - What is the "guidance"?

Current through Register Vol. 24-14, July 15, 2024
Because of concerns about problems with subprime mortgage
						lending, the federal government issued the
Interagency Guidance on
						Nontraditional Mortgage Product Risks
and a
Statement on
						Subprime Mortgage Lending
(collectively, "the guidance").
In 2007, governor Christine Gregoire convened the Washington
						state task force for homeowner security. The task force recommended including
						the federal guidance in state legislation. The 2008 Washington state
						legislature enacted SHB 2770, requiring the department of financial
						institutions to apply the two guidance documents to financial institutions in
						Washington. Starting in 2008, credit unions, banks, mortgage brokers and other
						Washington state financial institutions must have "policies and procedures"
						that use the guidance.
Statutory Authority:
							RCW
							43.320.040,
							19.144.040 (2008 c 108).
							08-22-072, §
										208-490-020, filed 11/4/08,
							effective 12/5/08.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-490 - "Guidance" for credit unions › Section 208-490-030 - What does the guidance require of credit unions?

Current through Register Vol. 24-14, July 15, 2024
The stated intent of the guidance is to help borrowers to
						better understand adjustable rate mortgage (ARM) risks. The guidance requires
						credit unions and other financial institutions to have "policies and
						procedures" that focus on the various risks of subprime/nontraditional mortgage
						lending.
The guidance requires credit unions to be aware of portfolio
						and risk management practices, to use appropriate underwriting standards and to
						abide by consumer protection principles. Credit unions also need to maintain
						strong internal control systems. Many of the recommendations in the guidance
						are good business practices, and may already be followed by credit
						unions.
Not all of the elements of the guidance may be applicable to
						all credit unions. Credit unions must determine which elements are relevant to
						their operations, and incorporate only those subjects into their policies and
						procedures.
Statutory Authority:
							RCW
							43.320.040,
							19.144.040 (2008 c 108).
							08-22-072, §
										208-490-030, filed 11/4/08,
							effective 12/5/08.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-490 - "Guidance" for credit unions › Section 208-490-040 - Is there a list of subjects that credit unions must consider for inclusion in their policies and procedures?

Current through Register Vol. 24-14, July 15, 2024
Yes, the guidance requires all financial institutions,
						including credit unions, to focus on the following subjects and apply the
						relevant ones to their existing policies and procedures:
. Help borrowers understand ARM risks, including:
- Low initial payment;
- High or unlimited reset rate caps;
- Low or no documentation loans;
- Problems of frequent refinancing;
- Risk layering;
- Simultaneous second lien loans;
- Prepayment penalties;
- NCUA prohibited practices.
. Understand portfolio and risk management practices,
						including:
- Relationship between subprime lending and predatory
						lending;
- Risks of loans based on foreclosed or liquidation
						value;
- Problem of loan "flipping";
- Fraud detection;
- Use of qualifying standards;
- Maintenance of appropriate capital levels;
- Use of appropriate allowance for loan and lease loss
						levels;
- Risks of stated income loans.
. Underwriting standards.
. Workout arrangements.
. Consumer protection principles, including:
- Use of a summary disclosure form;
- Avoidance of steering borrowers to inappropriate
						products;
- Explanation of payment shock risk;
- Explanation of prepayment penalty;
- Explanation of balloon payment;
- Explanation of costs of low documentation or stated income
						loans;
- Compliance with the Truth in Lending Act and other federal
						requirements;
- Importance of good consumer communications in promotional
						materials and product descriptions;
- Explanation of borrower responsibility for taxes and
						insurance.
. Development and maintenance of strong internal controls,
						including:
- Management of deals with third-party originators;
- Management of secondary market risk;
- Effective management information and reporting;
- Use of stress testing and performance measures;
- Actual practices consistent with policies.
There may also be other subjects contained in the guidance that
						may be relevant to some credit unions.
Statutory Authority:
							RCW
							43.320.040,
							19.144.040 (2008 c 108).
							08-22-072, §
										208-490-040, filed 11/4/08,
							effective 12/5/08.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-490 - "Guidance" for credit unions › Section 208-490-050 - Where can I read the guidance documents?

Current through Register Vol. 24-14, July 15, 2024
You can find the two federal guidance documents on the
						internet:
http://www.fdic.gov/news/news/press/2006/pr06086b.pdf
;
						and
http://www.fdic.gov/news/news/press/2007/pr07055a.html
.
You can also click on the links on the DFI web site at
www.dfi.wa.gov
.
If you do not have internet access, you may contact the
						department of financial institutions, division of credit unions (DCU) for a
						copy of the documents.
Read these documents carefully to ensure your credit union's
						application of the law, and to comply with its required integration of the
						guidance into your policies and procedures. If your credit union needs help
						incorporating the guidance into your policies and procedures, contact your
						lawyer.
Statutory Authority:
							RCW
							43.320.040,
							19.144.040 (2008 c 108).
							08-22-072, §
										208-490-050, filed 11/4/08,
							effective 12/5/08.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-490 - "Guidance" for credit unions › Section 208-490-060 - Why do I need to read the federal guidance documents?

Current through Register Vol. 24-14, July 15, 2024
The federal guidance consists of two lengthy documents that are
						very detailed. Because they are required by state statutory law, they apply in
						their entirety. DCU cannot merely summarize them or give you a checklist. You
						must read the documents in order to apply the relevant provisions to your
						particular credit union, by integrating the guidance into your own policies and
						procedures.
Statutory Authority:
							RCW
							43.320.040,
							19.144.040 (2008 c 108).
							08-22-072, §
										208-490-060, filed 11/4/08,
							effective 12/5/08.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-490 - "Guidance" for credit unions › Section 208-490-070 - What will the division of credit unions do about compliance with guidance policies and procedures?

Current through Register Vol. 24-14, July 15, 2024
Every state-chartered credit union is different. There is no
						one-size-fits-all guidance available. DCU will not issue model guidance,
						because the process of self-analysis that a credit union needs to do, in order
						to develop its own guidance policies and procedures, is beneficial. The DCU
						does not provide technical legal advice.
Also, the guidance is complex, and will result in variations in
						wording or applicability of guidance policies and procedures among credit
						unions, depending upon the size and complexity of that particular credit union,
						the characteristics of its membership base, and the type of mortgage lending it
						does, if any.
For supervision purposes, the division of credit unions
						will:
(1) Verify that a credit union
					has integrated the guidance into its policies and procedures, as part of its
					risk-focused exam. DCU will not mandate the length or exact wording used in the
					guidance policies and procedures.
(2) Review the guidance policies and
					procedures with the credit union, if a consumer complaint indicates a problem
					or issue regarding subprime and nontraditional mortgage lending
					practices.
(3) Verify that a credit
					union is following its policies and procedures.
The DCU expects prompt compliance by credit unions with the
						requirements of this rule.
The law provides DCU with examination, enforcement and
						investigation authority to take appropriate action against credit unions that
						are in noncompliance with the guidance policies and procedures
						requirement.
Statutory Authority:
							RCW
							43.320.040,
							19.144.040 (2008 c 108).
							08-22-072, §
										208-490-070, filed 11/4/08,
							effective 12/5/08.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-010 - Definitions

Current through Register Vol. 24-14, July 15, 2024
(1)
"Bank"
means a commercial bank chartered and regulated under Title
					30A RCW, a mutual or stock savings bank chartered and regulated under Title 32
					RCW, or a savings association chartered under the provisions of Title 33
					RCW.
(2)
"Community
					Reinvestment Act"
as defined in this chapter shall be identical to the
					corresponding definitions set forth in the Community Reinvestment Act of 1977,
					12 U.S.C.
					2901, et seq. and regulations promulgated
					under the Federal Reserve Board's Regulation BB,  12 C.F.R. Part 228 ; provided,
					these definitions are not inconsistent with the context used, or otherwise
					defined, in this regulation or in chapter 30A.60 RCW.
(3)
"Director"
means the
					director of the division of banks of the department of financial
					institutions.
(4)
"Division"
means the division of banks of the department of
					financial institutions.
(5)
"Financial subsidiary,"
in relation to a bank, has the same
					meaning that it does in relation to a national bank pursuant to the
					Gramm-Leach-Bliley Act of 1999,
					12 U.S.C.
					93a, et seq. and regulations promulgated
					under the Office of the Comptroller of the Currency,
					12 C.F.R., Section
					5.39(d)(6).
(6)
"Investment grade"
means the
					issuer of a security has an adequate capacity to meet financial commitments
					under the security for the projected life of the asset or exposure. An issuer
					has an adequate capacity to meet financial commitments if the risk of default
					by the obligor is low and the full and timely repayment of principal and
					interest is expected.
(7)
"Investment security"
or
"investment securities"
means a marketable debt obligation that is investment grade and not
					predominantly speculative in nature. Such obligations may be represented by an
					indebtedness of any person, copartnership, association, or corporation; an
					indebtedness of the government of the United States or any agency thereof; an
					indebtedness of any state, or political subdivision thereof; or an indebtedness
					of any publicly owned entity that is an instrumentality of a state or municipal
					corporation in the form of bonds, notes, and/or debentures.
(8)
"Marketable"
means that the
					security:
(a) Is registered under the
					Securities Act of 1933, 15
					U.S.C. 77a et seq.;
(b) Is a municipal revenue bond exempt from
					registration under the Securities Act of 1933,
					15 U.S.C.
					77c(a)(2);
(c) Is offered and sold pursuant to
					Securities and Exchange Commission Rule 144A,  17 C.F.R., Sec. 230 . 144A, and
					investment grade; or
(d) Can be
					sold with reasonable promptness at a price that corresponds reasonably to its
					fair value.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-020 - Characterization of "federal fund transactions."

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-512-020, filed 8/22/00,
							effective 9/22/00; Order 3, § 50-12-020, filed
							12/23/68.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-030 - Definitions and characterization of time deposits

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, amended and
							recodified as §
										208-512-030, filed 8/22/00,
							effective 9/22/00; Order 2, § 50-12-030, filed
							12/23/68.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-050 - Limiting loans to officers

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-512-050, filed 8/22/00,
							effective 9/22/00. Statutory Authority: RCW    30.12.060. 85-19-052 (Order 62),
							§ 50-12-050, filed 9/13/85; 84-03-036 (Order 58), § 50-12-050, filed
							1/13/84; 79-04-042 (Order 40), § 50-12-050, filed 3/23/79; Order 31,
							§ 50-12-050, filed 10/2/75; Order 4, § 50-12-050, filed 5/15/69,
							effective 6/16/69.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-060 - Accounts in excess of one hundred thousand dollars

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, amended and
							recodified as §
										208-512-060, filed 8/22/00,
							effective 9/22/00; Order 29, § 50-12-060, filed 10/2/75; Order 7 and
							Emergency Order 6, § 50-12-060, filed
							1/7/70.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-070 - Nonbankable assets

Current through Register Vol. 24-14, July 15, 2024
(1) In
					determining whether an asset of a bank is bankable, all of the circumstances of
					the asset shall be weighed including, but not limited to, the following:
(a) Character of the borrower;
(b) Capacity of the borrower;
(c) Capital of the borrower;
(d) Sufficiency of the collateral;
(e) Economic conditions pertaining to the
					type of business in which the borrower is engaged; and
(f) Conformance to general banking standards
					as then currently practiced in the banking industry.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-080 - Purchase or sale of investment securities - Resale or repurchase agreement

Current through Register Vol. 24-14, July 15, 2024
The purchase or sale of investment securities under an
						agreement to resell or repurchase the interest transferred, or a portion
						thereof, at the end of a stated period, does not constitute an obligation
						subject to the lending limits under
						RCW
						   30A.04.111 and chapter 208-512A WAC and is
						not considered a pledge or hypothecation of investment securities or assets of
						the bank to a depositor within the meaning of
						RCW
						   30A.04.140.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-512-080, filed 8/22/00,
							effective 9/22/00. Statutory Authority: RCW    30.04.030. 83-03-020 (Order 51),
							§ 50-12-080, filed 1/13/83; Order 28, § 50-12-080, filed
							9/10/74.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-090 - Purchase or sale of investment securities For customer or institution accounts allowable

Current through Register Vol. 24-14, July 15, 2024
Subject to the Federal Reserve Board's Regulation R,  12 C.F.R.
						Part 218, a bank may purchase and sell investment securities upon the order and
						for the account of its customers and may deal in the underwriting and
						purchasing of investment securities for the bank's investment account subject
						to WAC 208-512-110 through
						208-512-117,
						inclusive.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-512-090, filed 8/22/00,
							effective 9/22/00. Statutory Authority: RCW    30.04.030. 83-01-082 (Order 49),
							§ 50-12-090, filed 12/17/82.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-100 - Leasing bank premises - Limitations

Current through Register Vol. 24-14, July 15, 2024
(1) A bank may lease part of the premises in
					which it conducts its day-to-day business to persons engaged in nonbanking
					business activities subject to the following limitations:
(a) No director, officer, or employee of such
					bank may have any direct or indirect financial interest exceeding ten percent
					of the lessee's business activities conducted on the premises leased, unless
					the transaction is made on substantially the same terms as those prevailing at
					the same time for comparable transactions by the bank with other persons who
					are not affiliated with the institution, and the transaction has been approved
					in advance by a majority of the board of the directors of the
					institution;
(b) No bank may
					receive commissions or other revenues from the lessee other than periodic
					rental payments received under terms that are usual and customary in leasing
					space used for similar commercial purposes, as determined by the
					director;
(c) No lessee may have
					access to secure areas of the bank's premises and a lessee may not conduct
					business activities on the secure areas of the bank's premises other than
					during regular banking hours;
(d)
					No bank may exercise managerial control over the lessee's business activities
					or assume, guarantee, or otherwise become obligated for the lessee's debts or
					legal obligations;
(e) No bank may
					advertise a lessee's business activities conducted on such bank's premises as a
					service provided by the bank, or otherwise represent that the lessee's business
					activities are not independently owned and operated;
(f) No bank may use tying arrangements
					involving the sale of a lessee's goods or services offered on such bank's
					premises or in any other way require purchase of a lessee's goods or services
					as a condition for granting credit or performing services.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-110 - Investment securities - Permissible investments

Current through Register Vol. 24-14, July 15, 2024
(1) Permissible investments include the
					following investment security types, subject to specific capital limitations:
(a) Type I security, which a bank may deal
					in, purchase, and sell for its own account without any capital and surplus
					limitation.
(b) Type II security,
					which a bank may deal in, purchase and sell for its own account subject to a
					twenty percent of capital and surplus limitation, in addition to any limitation
					set forth in WAC
					208-512-115(1).
(c) Type III security which a bank may
					purchase and sell for its own account with a twenty percent of capital and
					surplus limitation, in addition to any limitation set forth in WAC
					208-512-115(1).
(d) Type IV security, which a bank may
					purchase and sell for its own account without any capital and surplus
					limitation.
(e) Type V security,
					which a bank may purchase and sell for its own account with a twenty-five
					percent of capital and surplus limitation.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-115 - Investment securities - Proper management

Current through Register Vol. 24-14, July 15, 2024
(1) If a bank holds at any time Type II or
					III securities that are not considered investment grade and represent an
					aggregate par value exceeding five percent of the bank's capital and surplus,
					the investment securities must be charged down to market value, or a specific
					reserve must be established within ninety days.
(2) Each bank shall maintain in its files
					credit information adequate to demonstrate that it has exercised prudence in
					carrying out the securities-related transactions involving the underwriting,
					the dealing in, and the purchase and sale of investment securities. This
					information shall be retained:
(a) When
					investment securities are purchased for the bank's own portfolio, as long as
					the investment security remains in the portfolio;
(b) When investment securities are
					underwritten by the bank, for the maturity or the life of the investment
					security; and
(c) With regard to
					dealer activities, for periods set forth in the relevant rules of the municipal
					securities rule-making board.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-116 - Investment securities - Investment in investment companies

Current through Register Vol. 24-14, July 15, 2024
A bank may invest in shares of an investment company provided
						that all of the following conditions are met:
(1) The investment company must be registered
					with Securities and Exchange Commission under the Investment Company Act of
					1940 and the Securities Act of 1933 or be a privately offered fund sponsored by
					an affiliated commercial bank.
(2)
					The shareholder has a fair and equal proportionate undivided interest in the
					underlying assets of the investment company calculated pursuant to the
					Investment Company Act of 1940.
(3)
					When an investment company's assets consist solely of and are expressly limited
					to obligations that are eligible for unlimited investment (Type I) as described
					in WAC 208-512-100, there is no limit on
					the bank's investment. However, where the investment company's portfolio
					contains, or is permitted to contain, investment securities subject to the
					bank's investment or lending limitations, investment by the bank shall be
					subject to a twenty percent of capital and surplus limitation.
(4) The shareholders are protected against
					personal liability for acts or obligations of the investment company.
(5) The bank's investment policy, as formally
					approved by its board of directors, specifically provides for such investments;
					prior approval of the board of directors is obtained for initial investments in
					specific investment companies and recorded in the official board minutes; and
					procedures, standards, and controls for managing such investments are
					implemented prior to acquiring these investments.
(6) If the investment company makes use of
					futures, forwards, options, repurchase agreements and securities lending
					arrangements, their use must be consistent with standards adopted for use of
					such instruments in the bank's portfolio.
(7) Regulatory reporting of holdings in
					investment companies is consistent with established standards for marketable
					investment securities.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 01-06-024, §
										208-512-116, filed 2/27/01,
							effective 3/30/01; 00-17-141, recodified as §
										208-512-116, filed 8/22/00,
							effective 9/22/00. Statutory Authority: RCW    30.08.140(7). 92-04-027, §
							50-12-116, filed 1/28/92, effective 2/28/92. Statutory Authority: RCW
							   30.08.140. 87-20-036 (Order 70), § 50-12-116, filed
							9/30/87.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-117 - Investment securities Investments in corporations

Current through Register Vol. 24-14, July 15, 2024
Nothing in WAC
						208-512-110,
						208-512-115, or
						208-512-116 shall limit the
						authority of a bank to invest in corporations or entities pursuant to chapters
						32.20 and 33.24 RCW, or with the prior authorization of the director pursuant
						to RCW 30A.04. 127.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 01-06-024, §
										208-512-117, filed 2/27/01,
							effective 3/30/01; 00-17-141, amended and recodified as §
										208-512-117, filed 8/22/00,
							effective 9/22/00. Statutory Authority: RCW    30.08.140. 87-24-042 (Order 71),
							§ 50-12-117, filed 11/25/87.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-120 - Promulgation

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, amended and
							recodified as §
										208-512-120, filed 8/22/00,
							effective 9/22/00. Statutory Authority: Chapter 30.60 RCW, RCW    30.04.212 and
							30.04.214. 87-02-010 (Order 66), § 50-12-120, filed
							12/30/86.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-130 - Community Reinvestment Act Purpose

Current through Register Vol. 24-14, July 15, 2024
WAC
						208-512-180 and
						208-512-190, inclusive, are
						intended to further refine the requirements under chapter 30A.60 RCW and
						RCW
						   30A.04.212 to encourage banks to help meet
						the credit needs of their local communities in satisfying their continuing and
						affirmative obligations to help meet the credit needs of the local communities,
						including low-income and moderate-income neighborhoods, consistent with safe
						and sound operation of those banks; and, to provide for further consideration
						of those records in connection with certain applications.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-512-130, filed 8/22/00,
							effective 9/22/00. Statutory Authority: Chapter 30.60 RCW, RCW    30.04.212 and
							30.04.214. 87-02-010 (Order 66), § 50-12-130, filed
							12/30/86.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-140 - Definitions

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, amended and
							recodified as §
										208-512-140, filed 8/22/00,
							effective 9/22/00. Statutory Authority: Chapter 30.60 RCW, RCW    30.04.212 and
							30.04.214. 87-02-010 (Order 66), § 50-12-140, filed
							12/30/86.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-150 - Assessing the record of performance

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, amended and
							recodified as §
										208-512-150, filed 8/22/00,
							effective 9/22/00. Statutory Authority: Chapter 30.60 RCW, RCW    30.04.212 and
							30.04.214. 87-02-010 (Order 66), § 50-12-150, filed
							12/30/86.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-160 - Rating assignment

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, amended and
							recodified as §
										208-512-160, filed 8/22/00,
							effective 9/22/00. Statutory Authority: Chapter 30.60 RCW, RCW    30.04.212 and
							30.04.214. 87-02-010 (Order 66), § 50-12-160, filed
							12/30/86.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-170 - Rating for period January 1, 1986 through December 31, 1986

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-512-170, filed 8/22/00,
							effective 9/22/00. Statutory Authority: Chapter 30.60 RCW, RCW    30.04.212 and
							30.04.214. 87-02-010 (Order 66), § 50-12-170, filed
							12/30/86.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-180 - Community Reinvestment Act Limitation on single investment for commercial banks

Current through Register Vol. 24-14, July 15, 2024
The total investment by a commercial bank in a single parcel of
						real property, and improvements thereon, shall not exceed twenty-five percent
						of the aggregate amount of such bank's real estate investments allowed by
						RCW
						   30A.04.212.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-512-180, filed 8/22/00,
							effective 9/22/00. Statutory Authority: Chapter 30.60 RCW, RCW    30.04.212 and
							30.04.214. 87-02-010 (Order 66), § 50-12-180, filed
							12/30/86.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-190 - Community Reinvestment Act Investment in qualifying community investments for commercial banks

Current through Register Vol. 24-14, July 15, 2024
(1) An amount equal
					to ten percent of the aggregate amount invested in real estate by a commercial
					bank pursuant to
					RCW
					   30A.04.212 shall be placed in qualifying
					community investments.
(2) A
					qualifying community investment made by an entity that wholly owns a bank, is
					wholly owned by a bank, or is wholly owned by an entity that wholly owns the
					bank, shall be deemed to have been made by a bank to satisfy the requirements
					of subsection (1) of this section.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-512-190, filed 8/22/00,
							effective 9/22/00. Statutory Authority: Chapter 30.60 RCW, RCW    30.04.212 and
							30.04.214. 87-02-010 (Order 66), § 50-12-190, filed
							12/30/86.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-200 - Community Reinvestment Act Consideration of performance in approving and disapproving applications

Current through Register Vol. 24-14, July 15, 2024
Subject to
						RCW
						   30A.60.020, the division shall consider,
						among other factors, the record of performance of the applicant in helping to
						meet the credit needs of the applicant's entire community, including low-income
						and moderate-income neighborhoods in determining the approval or disapproval
						for the following applications:
(1)
					New branch or satellite facility;
(2) Purchase or sale of assets;
(3) Merger;
(4) Acquisition;
(5) Authority to engage in a business
					activity;
(6) Conversion from a
					national bank to a state-chartered bank; and
(7) Such other application as the director
					may consider appropriate.
The performance record need not be considered for subsections
						(2), (3), and (4) of this section where solvency and safety soundness of the
						bank is threatened. Assessment of an institution's Community Reinvestment Act
						performance may be a basis for denying an application.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, amended and
							recodified as §
										208-512-200, filed 8/22/00,
							effective 9/22/00. Statutory Authority: Chapter 30.60 RCW, RCW    30.04.212 and
							30.04.214. 87-02-010 (Order 66), § 50-12-200, filed
							12/30/86.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-310 - Insurance agency activities - Promulgation

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, amended and
							recodified as §
										208-512-310, filed 8/22/00,
							effective 9/22/00. Statutory Authority: RCW    30.04.030. 90-10-074, §
							50-12-310, filed 5/2/90, effective
							6/2/90.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-320 - Insurance-related activities - Purpose

Current through Register Vol. 24-14, July 15, 2024
WAC 208-512-320 through
						208-512-370, inclusive, govern
						the authority of a bank to engage in insurance-related
						activities.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-512-320, filed 8/22/00,
							effective 9/22/00. Statutory Authority: RCW    30.04.030. 90-10-074, §
							50-12-320, filed 5/2/90, effective
							6/2/90.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-330 - Insurance agency activities - Definitions

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-512-330, filed 8/22/00,
							effective 9/22/00. Statutory Authority: RCW    30.04.030. 90-10-074, §
							50-12-330, filed 5/2/90, effective
							6/2/90.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-340 - Insurance-related activities - General rule

Current through Register Vol. 24-14, July 15, 2024
Except as provided in these rules, or as otherwise provided by
						law, a bank may not act as a principal in any insurance-related activity that
						is not permissible for a national bank, unless consistent with  12 U.S.C. Sec. 1831a.
(1) The Federal Deposit
					Insurance Corporation has determined that the activity would pose no
					significant risk to the Deposit Insurance Fund; and
(2) The bank is, and continues to be, in
					compliance with the capital standards required pursuant to  12 U.S.C. Sec. 1831o and as specified in  12 C.F.R. Part 325, or any applicable successor federal
					rule; and
(3) If the bank is a
					federal reserve member bank, any additional requirement or restriction
					involving insurance-related activities that the Board of Governors of the
					Federal Reserve system may prescribe.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-512-340, filed 8/22/00,
							effective 9/22/00. Statutory Authority: RCW    30.04.030. 90-10-074, §
							50-12-340, filed 5/2/90, effective
							6/2/90.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-350 - Insurance-related activities - Exceptions

Current through Register Vol. 24-14, July 15, 2024
Notwithstanding WAC
						208-512-340, a bank may not
						engage in insurance underwriting except to the extent that activity is
						permissible for a national bank.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, amended and
							recodified as §
										208-512-350, filed 8/22/00,
							effective 9/22/00. Statutory Authority: RCW    30.04.030. 90-10-074, §
							50-12-350, filed 5/2/90, effective
							6/2/90.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-360 - Insurance-related activities - Subsidiary

Current through Register Vol. 24-14, July 15, 2024
(1) A bank may conduct insurance-related
					activities through a subsidiary of the bank as authorized by
					RCW
					   30A.04.125(8) subject to
					subsection 2 of this section.
(2) A
					subsidiary of a bank may not engage as a principal in any insurance-related
					activity that is not permissible for a subsidiary of a national bank unless,
					consistent with  12 U.S.C. Sec. 1831a.
(a) The
					Federal Deposit Insurance Corporation has determined that the activity would
					pose no significant risk to the Deposit Insurance Fund;
(b) The bank is, and continues to be, in
					compliance with the capital standards required pursuant to  12 U.S.C. Sec. 1831o and as specified in  12 C.F.R. Part 325, or any applicable successor federal
					rule; and
(c) If the parent bank is
					a Federal Reserve member bank, any additional requirement or restriction
					applicable to the subsidiary involving insurance-related activities that the
					Board of Governors of the Federal Reserve System may prescribe.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-370 - Insurance-related activities - Enforcement

Current through Register Vol. 24-14, July 15, 2024
It shall be considered an unsafe and unsound practice in
						conducting the affairs of the bank if in the opinion of the director, the
						insurance-related activities of a bank or bank subsidiary are:
(1) A violation of WAC
					208-512-340,
					208-512-350, or
					208-512-360; or
(2) A violation of any requirements under
					Title 48 RCW and the rules of the office of insurance commissioner involving
					insurance-related activities;
(3)
					In violation of any applicable state or federal consumer protection law;
					or
(4) In violation of any
					applicable state or federal statute prohibiting anti-competitive
					activities.
Statutory Authority: RCW    30.04.030 and
							43.320.040. 00-17-141, amended and
							recodified as §
										208-512-370, filed 8/22/00,
							effective 9/22/00. Statutory Authority: RCW    30.04.030. 90-10-074, §
							50-12-370, filed 5/2/90, effective
							6/2/90.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-400 - Subprime mortgage lending Purpose of these rules

Current through Register Vol. 24-14, July 15, 2024
These rules are designed to help Washington state-chartered
						banks (Title 30A RCW), savings banks (Title 32 RCW) and savings associations
						(Title 33 RCW) establish, reiterate, integrate and maintain their own policies
						and procedures regarding subprime and nontraditional mortgage lending guidance.
						These policies and procedures are required by a new state law, chapter 108,
						Laws of 2008 (chapter 19.144 RCW).
Statutory Authority:
							RCW
							   19.144.040 [19.144.030]. 08-22-070, §
										208-512-400, filed 11/4/08,
							effective 12/5/08.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-410 - Subprime mortgage lending What is the "guidance"?

Current through Register Vol. 24-14, July 15, 2024
Because of concerns about problems with subprime mortgage
						lending, the federal government issued the
Interagency Guidance on
						Nontraditional Mortgage Product Risks
and a
Statement on
						Subprime Mortgage Lending
(collectively, "the guidance"). In 2007, the
						governor convened the Washington state task force for homeowner security. The
						task force recommended including the federal guidance in state legislation. The
						2008 Washington state legislature enacted SHB 2770, requiring the department of
						financial institutions to apply the two guidance documents to financial
						institutions in Washington. Starting in 2008, credit unions, banks, savings
						banks, savings associations, mortgage brokers and other Washington state
						consumer loan companies (collectively, "financial institutions") must have
						policies and procedures that use the guidance.
Statutory Authority:
							RCW
							   19.144.040 [19.144.030]. 08-22-070, §
										208-512-410, filed 11/4/08,
							effective 12/5/08.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-420 - Subprime mortgage lending What does the guidance require of banks, savings banks and savings associations?

Current through Register Vol. 24-14, July 15, 2024
The stated intent of the guidance is to help borrowers to
						better understand adjustable rate mortgage (ARM) risks. The guidance requires
						financial institutions to have policies and procedures that focus on the
						various risks of subprime/nontraditional mortgage lending. The guidance
						requires financial institutions to be aware of portfolio and risk management
						practices, to use appropriate underwriting standards and to abide by consumer
						protection principles. Financial institutions also need to maintain strong
						internal control systems. Many of the recommendations in the guidance are good
						business practices and may already be followed by financial
						institutions.
Not all of the elements of the guidance may be applicable to
						all banks, savings banks and savings associations, or to all other financial
						institutions. Banks, savings banks and savings associations must determine
						which elements are relevant to their operations, and incorporate only those
						subjects into their policies and procedures.
Statutory Authority:
							RCW
							   19.144.040 [19.144.030]. 08-22-070, §
										208-512-420, filed 11/4/08,
							effective 12/5/08.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-430 - Subprime mortgage lendingIs there a list of subjects that banks, savings banks and savings associations must include in their policies and procedures?

Current through Register Vol. 24-14, July 15, 2024
Yes, the guidance requires all financial institutions,
						including banks, savings banks and savings associations, to focus on the
						following subjects and apply the relevant ones to their existing policies and
						procedures:
(1) Help borrowers
					understand ARM risks, including:
(a) Low
					initial payment;
(b) High or
					unlimited reset rate caps;
(c) Low
					or no documentation loans;
(d)
					Problems of frequent refinancing;
(e) Risk layering;
(f) Simultaneous second lien loans;
(g) Prepayment penalties;
(h) FDIC or FRB prohibited practices (banks,
					savings banks and savings associations).
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-440 - Subprime mortgage lending Where can I read the guidance documents?

Current through Register Vol. 24-14, July 15, 2024
You can find the two federal guidance documents on the
						internet:http://www.fdic.gov/news/news/press/2006/pr06086b.pdf; and
						http://www.fdic.gov/news/news/press/2007/pr07055a. html.
You can also click on the links on the DFI web site at
						www.dfi.wa.gov.
If you do not have internet access, you may contact the
						department of financial institutions, division of banks (division of banks) for
						a copy of the documents.
Read these documents to ensure proper application of the law to
						your institution and to comply with the required integration of the guidance
						into your policies and procedures. If your institution needs help incorporating
						the guidance or reconciling it to your policies and procedures, contact your
						legal counsel.
Statutory Authority:
							RCW
							   19.144.040 [19.144.030]. 08-22-070, §
										208-512-440, filed 11/4/08,
							effective 12/5/08.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-450 - Subprime mortgage lending Why do I need to read the federal guidance documents?

Current through Register Vol. 24-14, July 15, 2024
The federal guidance consists of two lengthy documents that are
						very detailed. Because they are required by state statutory law, they apply in
						their entirety. Division of banks cannot merely summarize them or give you a
						checklist. You must read the documents in order to apply them to your
						particular institution by means of integrating the guidance into your own
						policies and procedures.
Statutory Authority:
							RCW
							   19.144.040 [19.144.030]. 08-22-070, §
										208-512-450, filed 11/4/08,
							effective 12/5/08.