reglab/statecodes huggingface dataset:
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › EXEMPTION FROM LICENSING › Section 208-620-104 - Who is exempt from licensing as a consumer loan company?

Current through Register Vol. 24-14, July 15, 2024
(1) See RCW    31.04.025(2)(a), (b), (d), (g) through (i), and (k) through (m).
(2) Under RCW    31.04.025(2)(c), entities conducting transactions under chapter 63.14 RCW (Retail installment sales of goods and services); however, the entity is not exempt if the transactions are an extension of credit to purchase merchandise certificates, coupons, open or closed loop stored value, or any other item issued and redeemable by a retail seller other than the entity extending the credit.
(3) Under RCW    31.04.025(2)(e), any person making a loan primarily for business, commercial, or agricultural purposes unless the loan is secured by a lien on the borrower's primary dwelling.
(4) Under RCW    31.04.025(2)(f), a person selling property they own, that does not contain a dwelling, when the property serves as security for the financing. The exemption is not available to individuals subject to the federal S.A.F.E. Act or any person in the business of constructing or acting as a contractor for the construction of residential dwellings. See also WAC 208-620-232.
(5) Under RCW    31.04.025(2)(j), a nonprofit housing organization seeking exemption must meet the following standards:
(a) Has the status of a tax-exempt organization under Section  501 (c)(3) of the Internal Revenue Code of 1986;
(b) Promotes affordable housing or provides home ownership education, or similar services;
(c) Conducts its activities in a manner that serves public or charitable purposes, rather than commercial purposes;
(d) Receives funding and revenue and charges fees in a manner that does not incentivize it or its employees to act other than in the best interests of its clients;
(e) Compensates its employees in a manner that does not incentivize employees to act other than in the best interests of its clients;
(f) Provides or identifies for the borrower residential mortgage loans with terms favorable to the borrower and comparable to mortgage loans and housing assistance provided under government housing assistance programs; and
(g) Meets other standards as prescribed by the director.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › EXEMPTION FROM LICENSING › Section 208-620-105 - Who is exempt from licensing as a mortgage loan originator under this act?

Current through Register Vol. 24-14, July 15, 2024
The following are exempt from licensing as a mortgage loan
							originator:
(1) Registered mortgage
						loan originators or any individual required to be registered while employed by
						a covered financial institution as defined in regulation G,  12 C.F.R. Sec. 1007.102;
(2) Any individual who
						offers or negotiates terms of a residential mortgage loan with or on behalf of
						an immediate family member of the individual;
(3) Any individual who offers or negotiates
						terms of a residential mortgage loan secured by a dwelling that served as the
						individual's residence;
(4) A
						Washington licensed attorney who negotiates the terms of a residential mortgage
						loan on behalf of a client as an ancillary matter to the attorney's
						representation of the client, unless the attorney is compensated by a lender, a
						mortgage broker, or other mortgage loan originator or by any agent of such
						lender, mortgage broker, or other mortgage loan originator;
(5) Individuals who do not take residential
						mortgage loan applications or negotiate the terms of residential mortgage loans
						for compensation or gain or in the expectation of compensation or gain;
						and
(6)
(a) An employee of a bona fide nonprofit
						organization who acts as a loan originator only with respect to his or her work
						duties to the bona fide nonprofit organization, and who acts as a loan
						originator only with respect to residential mortgage loans with terms that are
						favorable to the borrower.
(b)
						Terms favorable to the borrower are terms consistent with loan origination in a
						public or charitable context, rather than a commercial context.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-230 - Do I need a consumer loan license to lend money, extend credit, service or modify the terms of residential mortgage loans, or service student education loans?

Current through Register Vol. 24-14, July 15, 2024
(1) Yes. If you do
						not qualify for an exemption under
						RCW
						   31.04.025 or
						31.04.420,
						you must hold a license to:
(a) Be located in
						Washington and lend money, extend credit, service or modify residential
						mortgage loans, or service student education loans;
(b) Be located outside Washington and lend
						money or extend credit to Washington residents, service or modify residential
						mortgage loans on Washington real estate, or service student education loans
						for Washington residents;
(c) From
						any location solicit or advertise by any means to Washington residents
						including but not limited to mail, brochure, telephone, print, radio,
						television, internet, or any other electronic means;
(d) From any location conduct business under
						the act with Washington residents by mail or internet;
(e) Hold yourself out as able to conduct any
						of the activities in (a) through (d) of this subsection.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-231 - Who must have a consumer loan license to service residential mortgage loans secured by Washington residential real estate or obligating Washington residents?

Current through Register Vol. 24-14, July 15, 2024
(1)
						Persons servicing loans they originated.
(2) Persons servicing loans purchased post
						closing.
(3) Persons servicing
						loans owned by other persons.
(4)
						See also WAC
						208-620-011(5) and
						208-620-104.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-231, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-232 - Can I make a small number of residential mortgage loans without being licensed at the company level?

Current through Register Vol. 24-14, July 15, 2024
Yes. Pursuant to RCW     31.04.025(3) you may be eligible to make
				  five or fewer residential mortgage loans during a calendar year without holding
				  a company level license. You must apply for and obtain the license waiver for
				  each transaction. If you are eligible for and receive the license waiver, you
				  must comply with certain conditions including the following:
(1) If you do not provide the borrower with a
				compliant federal disclosure of the loan terms and conditions and cost of
				financing, you must provide the buyer with a disclosure prescribed by the
				director.
(2) You must comply with
				the state's usury rate limit. See chapter 19.52 RCW.
(3) You must follow Washington law if you
				pursue a foreclosure.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-234 - Must a company that provides loan processing or underwriting services on residential mortgage loans be licensed under the Consumer Loan Act?

Current through Register Vol. 24-14, July 15, 2024
Yes.
(1) The company
						must license at the company level and must employ at least one licensed
						mortgage loan originator. Loan processors and underwriters are subject to the
						individual licensing requirements of the S.A.F.E. Act,  12 C.F.R. Part 1008
						 (Regulation H) if not supervised by an individual licensed as a mortgage loan
						originator under S.A.F.E. A company level license is required to provide the
						sponsorship for the supervising licensed mortgage loan originator.
(2) Alternatively, the company may license
						under the Mortgage Broker Practices Act, chapter 19.146 RCW.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-235 - When making loans, is there a maximum rate of interest allowed under the act?

Current through Register Vol. 24-14, July 15, 2024
Yes. The rate of interest specified in the note must not
							exceed twenty-five percent per annum.
Statutory Authority:
								RCW
								43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-235, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-235, filed 12/1/09,
								effective 1/1/10. Statutory Authority:
								RCW
								   43.320.040,
								19.144.070, 2008 c 78. 09-01-159,
								§
											208-620-235, filed 12/23/08,
								effective 1/23/09. Statutory Authority:
								RCW
								   31.04.165,
								31.04.015,
								31.04.045,
								31.04.075,
								31.04.085,
								31.04.093,
								31.04.102,
								31.04.115,
								31.04.145,
								31.04.155, and
								31.04.175. 06-04-053, §
											208-620-235, filed 1/27/06,
								effective 2/27/06.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-240 - Once I am licensed, does the act apply to all loans I broker or make?

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-240, filed 12/1/09,
								effective 1/1/10. Statutory Authority:
								RCW
								   31.04.165,
								31.04.015,
								31.04.045,
								31.04.075,
								31.04.085,
								31.04.093,
								31.04.102,
								31.04.115,
								31.04.145,
								31.04.155, and
								31.04.175. 06-04-053, §
											208-620-240, filed 1/27/06,
								effective 2/27/06.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-250 - Is my company required to have a licensed location in the state of Washington?

Current through Register Vol. 24-14, July 15, 2024
(1) No. You are
				not required to maintain a physical presence in this state to hold a license
				but any location doing business under the act, wherever located, must be
				licensed, except those locations consistent with subsection (2) of this
				section. Your company's main office (headquarters), wherever located, must have
				a license.
(2) If you employ
				mortgage loan originators, those licensed loan originators must work from a
				licensed location or from the loan originator's residence pursuant to WAC
				208-620-660.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-250, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   31.04.165,
								31.04.015,
								31.04.045,
								31.04.075,
								31.04.085,
								31.04.093,
								31.04.102,
								31.04.115,
								31.04.145,
								31.04.155, and
								31.04.175. 06-04-053, §
											208-620-250, filed 1/27/06,
								effective 2/27/06.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-251 - Are there any additional requirements for out-of-state licensees?

Current through Register Vol. 24-14, July 15, 2024
(1)
Keeping records
				out-of-state.
You must keep your books and records location information
				updated in the NMLS and provide the director with access to the books and
				records.
(2)
Service on
				out-of-state licensee.
An out-of-state licensee's registered agent in
				Washington is the licensee's agent for service of process, notice, or
				demand.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-251, filed 10/5/10,
								effective 11/5/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-260 - If I am licensed under the Consumer Loan Act, can I broker residential mortgage loans in the state of Washington?

Current through Register Vol. 24-14, July 15, 2024
Yes. You may broker residential mortgage loans under the
							Consumer Loan Act. Brokered loans are subject to the annual assessment. See WAC
							208-620-441.
Statutory Authority:
								RCW
								   43.320.040 and
								31.04.165. 12-18-047, §
											208-620-260, filed 8/29/12,
								effective 11/1/12. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-260, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,
								2009 c
								120, and
								2009 c
								149. 09-24-090, §
											208-620-260, filed 12/1/09,
								effective 1/1/10. Statutory Authority:
								RCW
								   43.320.040. 08-15-125, §
											208-620-260, filed 7/22/08,
								effective 8/22/08. Statutory Authority:
								RCW
								   31.04.165,
								31.04.015,
								31.04.045,
								31.04.075,
								31.04.085,
								31.04.093,
								31.04.102,
								31.04.115,
								31.04.145,
								31.04.155, and
								31.04.175. 06-04-053, §
											208-620-260, filed 1/27/06,
								effective 2/27/06.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-271 - Do I need a license to assist a homeowner with a residential mortgage loan modification?

Current through Register Vol. 24-14, July 15, 2024
Yes. Persons providing third-party loan modification
							services for compensation or gain must be licensed under this chapter, or under
							chapter 19.146 RCW. See also WAC
							208-620-552 and
							208-620-568.
Statutory Authority:
								RCW
								   43.320.040 and
								31.04.165. 12-18-047, §
											208-620-271, filed 8/29/12,
								effective 11/1/12. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-271, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,
								2009 c
								120, and
								2009 c
								149. 09-24-090, §
											208-620-271, filed 12/1/09,
								effective 1/1/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-280 - How do I apply for a consumer loan license?

Current through Register Vol. 24-14, July 15, 2024
(1) Your application consists of an online
						filing through the NMLS and Washington specific requirements provided directly
						to DFI. You must pay an application fee through the NMLS system.
(2) Upon application and periodically upon
						license renewal, each officer, director, and owner applicant must provide
						information concerning:
(a) Identity,
						including fingerprints for submission to the Washington state patrol, the
						federal bureau of investigation, the nationwide mortgage licensing system and
						registry, or any governmental agency or entity authorized to receive this
						information for a state and national criminal history background
						check;
(b) Personal
						history;
(c) Experience;
(d) Business record; and
(e) Other pertinent facts, as the director
						may reasonably require.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-281 - What will happen if my license application is incomplete?

Current through Register Vol. 24-14, July 15, 2024
The department will only process complete applications. If
							your application is incomplete your file will be marked "pending-deficient" in
							the NMLS. The department will either identify each deficiency or respond that
							there are multiple deficiencies and ask you to contact the department. You are
							responsible for reviewing your record and responding to each
							issue.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-281, filed 12/1/09,
								effective 1/1/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-282 - How do I withdraw my application for a license?

Current through Register Vol. 24-14, July 15, 2024
You may withdraw the application through the NMLS. You will
							not receive a refund of the NMLS application fee but you may receive a partial
							refund of your licensing fee if the fee exceeds the department's actual cost to
							investigate the license application.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-282, filed 12/1/09,
								effective 1/1/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-284 - What are my rights if the director denies my application for a license?

Current through Register Vol. 24-14, July 15, 2024
You have the right to request an administrative hearing
							pursuant to the Administrative Procedure Act,
							chapter
							34.05 RCW. To request a
							hearing, you must notify the department within twenty days from the date of the
							director's notice to you that your license application has been denied. See WAC
							208-620-615.
Statutory Authority:
								RCW
								43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-284, filed 12/1/09,
								effective 1/1/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-290 - What fees must I pay for my application for a consumer loan license?

Current through Register Vol. 24-14, July 15, 2024
(1)
NMLS
						fees.
You must pay the NMLS system fee when you submit your
						application.
(2)
DFI
						fees.
You must pay $95.55 per hour for review and investigation of the
						following:
(a) New consumer loan company
						license;
(b) New branch office
						license;
(c) Notice of change of
						control; or
(d) Opinions rendered
						regarding interpretations of statutes and rules.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-300 - If I want to operate my business from more than one location, do I have to license each location?

Current through Register Vol. 24-14, July 15, 2024
Yes. You must submit a branch office application through the
				  NMLS for each branch office, residential mortgage loan servicing location,
				  student education loan servicing location, or direct solicitation location. You
				  may not operate from a location until a license is granted for that location.
				  However, a branch license is not required for a loan originator to conduct
				  activities under the act from the loan originator's residence pursuant to WAC
				  208-620-660.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-300, filed 12/1/09,
								effective 1/1/10. Statutory Authority:
								RCW
								   31.04.165,
								31.04.015,
								31.04.045,
								31.04.075,
								31.04.085,
								31.04.093,
								31.04.102,
								31.04.115,
								31.04.145,
								31.04.155, and
								31.04.175. 06-04-053, §
											208-620-300, filed 1/27/06,
								effective 2/27/06.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-301 - If I make residential mortgage loans and employ managers, must they license individually as mortgage loan originators?

Current through Register Vol. 24-14, July 15, 2024
(1)
				Your managers, including branch managers, must license individually as mortgage
				loan originators if they conduct any one of the following activities:
(a) Take residential mortgage loan
				applications, negotiate the terms or conditions of residential mortgage loans,
				or hold themselves out as being able to conduct these activities;
(b) Supervise your loan processor or
				underwriting employees; or
(c)
				Supervise your licensed mortgage loan originators.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-310 - Is it necessary to license an office that is only providing underwriting and other back-office services?

Current through Register Vol. 24-14, July 15, 2024
A location that is solely providing loan processing or
				  underwriting or other back-office services on Washington loans and has only
				  incidental contact with the borrower after an application has been taken, is
				  not required to be licensed. Back office services do not include loan
				  servicing.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-310, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   31.04.165,
								31.04.015,
								31.04.045,
								31.04.075,
								31.04.085,
								31.04.093,
								31.04.102,
								31.04.115,
								31.04.145,
								31.04.155, and
								31.04.175. 06-04-053, §
											208-620-310, filed 1/27/06,
								effective 2/27/06.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-320 - What is the amount of the surety bond required for my consumer loan license?

Current through Register Vol. 24-14, July 15, 2024
(1) Surety bond
						amounts are based on the volume of your activity from prior years. If there is
						no prior year volume, the surety bond amount required at application is thirty
						thousand dollars. For purposes of this section, references to loan origination
						volume mean closed loans.
(2)
						Nonresidential loan origination. If you originate non-residential loans the
						surety bond amount is based on the annual dollar amount of loans you originate.
						See the following chart:
1.
Zero to twenty million in loans originated:
$30,000
2.
Twenty million to forty million:
$50,000
3.
Forty million to fifty million:
$100,000
4.
Fifty million and above:
$150,000
(3)
						Residential mortgage loans .
(a) Origination.
						If you only originate residential mortgage loans, the surety bond amount is
						based on the annual dollar amount of residential mortgage loans you originate.
						Use the chart in subsection (2) of this section for the bond amount.
(b) Servicing. If you only service
						residential mortgage loans, a bond requirement may only arise if you elect a
						surety bond in lieu of the required net worth in WAC
						208-620-322,
						or you sponsor a Washington mortgage loan originator.
(c) Origination and servicing. If you
						originate and service residential mortgage loans, your surety bond amount will
						be based on your origination volumes. See the table in subsection (2) of this
						section.
(d) Brokering. If you only
						broker residential mortgage loans, your surety bond amount will be based on the
						total annual principal amount of the loans brokered. See the table in
						subsection (2) of this section.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-321 - What are the capital requirements for a nondepository residential mortgage loan servicer applicant and licensee servicing loans guaranteed by one or more government sponsored entity (GSE) and/or government corporation?

Current through Register Vol. 24-14, July 15, 2024
(1)
(a) An applicant or licensee operating as an
						approved servicer by one or more government sponsored or government corporation
						entities must maintain liquidity (to include operating reserves) and tangible
						net worth that meet the standards set by the entity. If approved by more than
						one entity, the applicant or licensee must meet the highest standard of the
						entities for which they are approved. Tangible net worth does not include money
						held in borrower escrow accounts.
Examples of government sponsored entities are Freddie Mac,
							Fannie Mae, the Federal Home Loan Bank System, and the Federal Agricultural
							Mortgage Corporation. Ginnie Mae is an example of a government
							corporation.
(b) Applicants
						or licensees with a combined portfolio will be subject to the standards in (a)
						of this subsection.
For example, if your portfolio contains loans from one or
							more GSE or government corporations and loans not insured by any GSE or
							government corporation, your capital requirements must meet the highest
							standard of the GSE or government corporations.
(c) An applicant or licensee with a portfolio
						of loans not subject to any government sponsored or government corporation
						entity must comply with WAC 208-620-322.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-322 - What are the capital requirements for a nondepository residential mortgage loan servicer applicant or licensee servicing loans not guaranteed by a government sponsored entity (GSE) and/or government corporation?

Current through Register Vol. 24-14, July 15, 2024
(1)
(a) An
						applicant or licensee servicing residential mortgage loans not including any
						GSE or government corporation loans must maintain a minimum tangible net worth,
						based on its nationwide servicing portfolio, as follows:
0-199 loans
$100,000
200-299 loans
$200,000
300-399 loans
$300,000
400-499 loans
$400,000
500-599 loans
$500,000
600-699 loans
$600,000
700-799 loans
$700,000
800-899 loans
$800,000
900-999 loans
$900,000
1,000 plus loans
$1,000,000
(b)
						Alternatively the applicant or licensee may maintain a one million dollar
						surety bond in lieu of tangible net worth.
(c) In addition, the applicant or licensee
						must maintain liquidity (to include operating reserves) of .00035 times the
						unpaid principal balance of the portfolio.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-324 - What are the capital requirements for a student education loan servicer?

Current through Register Vol. 24-14, July 15, 2024
(1)
(a) An
						applicant or licensee servicing student education loans must maintain a minimum
						tangible net worth of two hundred fifty thousand dollars.
(b) In addition, the applicant or licensee
						must maintain liquidity (to include operating reserves) of .00035 times the
						unpaid principal balance of the nationwide portfolio.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-325 - What will my bond amount be in the first year of licensing?

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority:
								RCW
								   43.320.040 and
								31.04.165. 12-18-047, §
											208-620-325, filed 8/29/12,
								effective 11/1/12. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-325, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,
								2009 c
								120, and
								2009 c
								149. 09-24-090, §
											208-620-325, filed 12/1/09,
								effective 1/1/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-327 - How often will my bond amount change?

Current through Register Vol. 24-14, July 15, 2024
Your bond amount may change annually depending on your volume
							of Washington activity. By March 1st of each year, you must determine your
							required bond amount and provide DFI with proof of having an adequate
							bond.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-327, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-327, filed 12/1/09,
								effective 1/1/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-328 - For purposes of the annual assessment and surety bond calculation, how often must I report my Washington activity?

Current through Register Vol. 24-14, July 15, 2024
You must report your volume of activity as directed and on
							the form prescribed by the director.
Statutory Authority:
								RCW
								   43.320.040 and
								31.04.165. 12-18-047, §
											208-620-328, filed 8/29/12,
								effective 11/1/12. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-328, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,
								2009 c
								120, and
								2009 c
								149. 09-24-090, §
											208-620-328, filed 12/1/09,
								effective 1/1/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-330 - Does the surety bond need to reflect coverage for licensee and its W-2 employees and independent contractors?

Current through Register Vol. 24-14, July 15, 2024
Yes. The surety bond must cover both the licensee and all
							employees and independent contractors working for the
							licensee.
Statutory Authority:
								RCW
								43.320.040,
								19.144.070, 2008 c 78. 09-01-159,
								§
											208-620-330, filed 12/23/08,
								effective 1/23/09. Statutory Authority:
								RCW
								   31.04.165,
								31.04.015,
								31.04.045,
								31.04.075,
								31.04.085,
								31.04.093,
								31.04.102,
								31.04.115,
								31.04.145,
								31.04.155, and
								31.04.175. 06-04-053, §
											208-620-330, filed 1/27/06,
								effective 2/27/06.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-340 - Do I have any alternative to maintaining a surety bond?

Current through Register Vol. 24-14, July 15, 2024
With the director's approval, you may use a bond substitute,
							as defined in WAC
							208-620-010, that meets the
							following requirements:
(1) Your
						company must be a Washington business corporation.
(2) Your company must maintain unimpaired
						capital in an amount so that the aggregate sum of the company's debt, including
						outstanding promissory notes or other evidences of debt, does not at any time
						exceed three times the amount of its bond substitute.
(3) You may exclude long-term subordinated
						debt, as defined in WAC
						208-620-010, for purposes of
						calculating the bond substitute only if any claim by the subordinate debtholder
						on the company's assets is junior to claims by the state or a consumer under
						the act. You must file with the director a subordination agreement in favor of
						the state.
(4) You must not
						consider bad debts and uncollectible judgments as assets for purposes of
						calculating the bond substitute. A bad debt is any debt owed to you upon which
						any payment is six months or more past due. An uncollectible judgment is any
						judgment which is more than two years old and which has not been
						paid.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-340, filed 12/1/09,
								effective 1/1/10. Statutory Authority:
								RCW
								   31.04.165,
								31.04.015,
								31.04.045,
								31.04.075,
								31.04.085,
								31.04.093,
								31.04.102,
								31.04.115,
								31.04.145,
								31.04.155, and
								31.04.175. 06-04-053, §
											208-620-340, filed 1/27/06,
								effective 2/27/06.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-341 - If I originate residential mortgage loans and my company relies on the bond substitute, must my licensed mortgage loan originators obtain an individual bond?

Current through Register Vol. 24-14, July 15, 2024
Yes. They must each obtain individual bonds based on their
							mortgage loan origination volume. See WAC
							208-620-710(3)(i).
Statutory Authority:
								RCW
								   43.320.040 and
								31.04.165. 12-18-047, §
											208-620-341, filed 8/29/12,
								effective 11/1/12. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,
								2009 c
								120, and
								2009 c
								149. 09-24-090, §
											208-620-341, filed 12/1/09,
								effective 1/1/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-350 - If I qualify to use a bond substitute in lieu of a surety bond, what documentation do I have to provide to the department?

Current through Register Vol. 24-14, July 15, 2024
(1)
Semiannual financial statements
						required.
A licensee that maintains a bond substitute must submit
						semiannually to the director year-to-date financial statements prepared in
						accordance with generally accepted accounting principles, including at a
						minimum a statement of assets and liabilities and a profit and loss
						statement.
(2)
More frequent
						financial reporting.
The director may require that financial reports be
						submitted more frequently if past financial reports have been prepared
						incorrectly or were misleading or if there is substantial risk that the
						licensee will violate the bond substitute standard.
(3)
Additional information to be
						filed.
The director may require other documents, agreements and
						information deemed necessary to properly evaluate and ensure that the licensee
						remains in compliance with this section.
(4)
Failure to file financial
						statements as required.
The director may require a licensee that fails
						to file its financial statements under subsection (1) of this section to obtain
						a surety bond within thirty days of that failure.
Statutory Authority:
								RCW
								43.320.040. 08-15-125, §
											208-620-350, filed 7/22/08,
								effective 8/22/08. Statutory Authority:
								RCW
								   31.04.165,
								31.04.015,
								31.04.045,
								31.04.075,
								31.04.085,
								31.04.093,
								31.04.102,
								31.04.115,
								31.04.145,
								31.04.155, and
								31.04.175. 06-04-053, §
											208-620-350, filed 1/27/06,
								effective 2/27/06.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-360 - What if I use a bond substitute and my unimpaired capital falls below the minimum?

Current through Register Vol. 24-14, July 15, 2024
A company that does not maintain a sufficient bond substitute
							must notify the director within ten days of the decrease in unimpaired capital.
							The department will then direct you to obtain and file a surety bond in the
							amount required by WAC
							208-620-320. You must comply
							within twenty days. If you obtain a surety bond under this section you must
							maintain the surety bond for five years after the date of noncompliance. During
							this five-year period, the director will not accept a bond
							substitute.
Statutory Authority:
								RCW
								43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-360, filed 12/1/09,
								effective 1/1/10. Statutory Authority:
								RCW
								43.320.040. 08-15-125, §
											208-620-360, filed 7/22/08,
								effective 8/22/08. Statutory Authority:
								RCW
								   31.04.165,
								31.04.015,
								31.04.045,
								31.04.075,
								31.04.085,
								31.04.093,
								31.04.102,
								31.04.115,
								31.04.145,
								31.04.155, and
								31.04.175. 06-04-053, §
											208-620-360, filed 1/27/06,
								effective 2/27/06.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-370 - What are the grounds for denying or conditioning my consumer loan company license application?

Current through Register Vol. 24-14, July 15, 2024
The director may deny or condition approval of a license
							application if you or any principal, officer, or board director of the
							applicant:
(1) Fails to pay a fee due
						the department or the NMLS;
(2)
						Fails to demonstrate financial responsibility, experience, character, and
						general fitness to operate a business honestly, fairly, and efficiently within
						the purposes of the Consumer Loan Act. The director may find that the person
						has failed to make the demonstration if, among other things:
(a) Is or has been subject to an injunction
						or an administrative action issued pursuant to the Consumer Loan Act, the
						Consumer Protection Act, the Mortgage Broker Practices Act, the Insurance Code,
						the Securities Act, or similar laws in this or another state; or
(b) Is reported to have a history of unpaid
						debts as reported by an independent credit report issued by a recognized credit
						reporting agency; or
(c) Is the
						subject of a criminal felony indictment, or a criminal gross misdemeanor charge
						involving dishonesty or financial misconduct (RCW
						   31.04.055(1)(d));
						or
(d) Is insolvent in the sense
						that the value of the applicant's or licensee's liabilities exceeds its assets
						or in the sense that the applicant or licensee cannot meet its obligations as
						they mature; or
(e) Has had a
						license to conduct lending, residential mortgage loan servicing, to provide
						settlement services associated with lending or residential mortgage loan
						servicing, or student education loan servicing revoked or suspended by this
						state, another state, or by the federal government within five years of the
						date of submittal of a complete application for a license (see
						RCW
						   31.04.093(6)(c)).
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-371 - May I employ someone to work with Washington residents or Washington property who has been convicted of a gross misdemeanor or felony, or who has had a financial services-related license revoked or suspended?

Current through Register Vol. 24-14, July 15, 2024
No.
(1) Pursuant to
						RCW
						   31.04.093(6), the director
						may prohibit any officer, principal, or employee from participating in the
						affairs of any licensee if that officer, principal, or employee has been
						convicted of or pled guilty or nolo contendere to:
(a) A gross misdemeanor involving dishonesty
						or financial misconduct; or
(b) A
						felony in a domestic, foreign, or military court:
(i) During the seven-year period preceding
						the date of the proposed employment; or
(ii) At any time preceding the date of the
						proposed employment, if the felony involved an act of fraud, dishonesty, breach
						of trust, or money laundering.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-372 - Am I responsible for the actions of my employees and independent contractors?

Current through Register Vol. 24-14, July 15, 2024
Yes. You are responsible for any conduct violating the act or
							these rules by any person you employ, or engage as an independent contractor,
							to work in the business covered by your license.
Statutory Authority:
								RCW
								43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-372, filed 12/1/09,
								effective 1/1/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-373 - What happens to residential mortgage loans in the pipeline if a mortgage loan originator leaves my company?

Current through Register Vol. 24-14, July 15, 2024
Loan files belong to the company. Existing loan applications
							must be processed by another licensed loan originator in the company. At the
							borrower's written request, the loan must be transferred to another licensed
							entity within five days of the borrower's request. You may pay the original
							loan originator for the work he or she performed prior to
							leaving.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-373, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-373, filed 12/1/09,
								effective 1/1/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-374 - What action must I take in the NMLS if I fire a residential mortgage loan originator or if a residential mortgage loan originator quits?

Current through Register Vol. 24-14, July 15, 2024
You must file a relationship termination through the NMLS
							within ten days of firing someone or the person quitting.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-374, filed 10/5/10,
								effective 11/5/10. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-374, filed 12/1/09,
								effective 1/1/10.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-378 - Knowledge of the law and rules

Current through Register Vol. 24-14, July 15, 2024
You are responsible for ensuring that your employees and
							mortgage loan originators have a sufficient understanding of the act and the
							rules.
Statutory Authority:
								RCW
								43.320.040 and
								31.04.165. 12-18-047, §
											208-620-378, filed 8/29/12,
								effective 11/1/12.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › COMPANY LICENSING › Section 208-620-400 - Can I share an office with another business?

Current through Register Vol. 24-14, July 15, 2024
(1) You may conduct your business in a
						licensed location in which other persons are engaged in business.
(2) If you originate residential mortgage
						loans, you must comply with RESPA,  12 C.F.R. Sec. 1024.14, including the
						required disclosures and prohibitions on referral fees if:
(a) The licensee has effective control over
						the person sharing space; or
(b)The
						person sharing space has effective control over the licensee; or
(c)The licensee and the person sharing space
						are under common control by a third person; or
(d)The licensee is a corporation related to
						another corporation as parent to subsidiary and one refers business incident to
						or a part of a real estate settlement service to the other.