Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-660 - Mortgage brokers and loan originators-Licensing › Section 208-660-108 - How does the department interpret the definition of "loan originator" in RCW 19146-010(11)?

Current through Register Vol. 24-14, July 15, 2024
"Loan originator" or "mortgage loan originator" means a natural
				person who for direct or indirect compensation or gain, or in the expectation
				of direct or indirect compensation or gain:
* Takes a residential mortgage loan application; or
* Offers or negotiates terms of a mortgage loan, including
				short sale transactions. An individual "offers or negotiates terms of a
				residential mortgage loan" if the individual:
(a) Presents for consideration by a borrower
			 or prospective borrower particular residential mortgage loan terms;
			 or
(b) Communicates directly or
			 indirectly with a borrower, or prospective borrower for the purpose of reaching
			 a mutual understanding about prospective residential mortgage loan terms.
"Loan originator" also includes a person who holds themselves
				out to the public as able to perform any of the activities described in this
				definition. For purposes of this definition, a person "holds themselves out" by
				advertising or otherwise informing the public that the person engages in any of
				the activities of a mortgage broker or loan originator, including the use of
				business cards, stationery, brochures, rate lists, or other promotional
				items.
For purposes of further defining "loan originator," "taking a
				residential mortgage loan application" includes soliciting, accepting, or
				offering to accept an application for a residential mortgage loan or assisting
				a borrower or offering to assist a borrower in the preparation of a residential
				mortgage loan application.
"Loan originator" also includes a natural person who for direct
				or indirect compensation or gain or in the expectation of direct or indirect
				compensation or gain performs residential mortgage loan modification
				services.
"Loan originator" does not mean persons performing purely
				administrative or clerical tasks for a mortgage broker. For the purposes of
				this paragraph, "administrative or clerical tasks" means the receipt,
				collection, and distribution of information common for the processing of a loan
				in the mortgage industry and communication with a borrower to obtain
				information necessary for the processing of a loan. An individual who holds
				himself or herself out to the public as able to obtain a loan is not performing
				administrative or clerical tasks.
"Loan originator" does not include a person or entity that only
				performs real estate brokerage activities and is licensed or registered in
				accordance with applicable state law, unless the person or entity is
				compensated by a lender, a mortgage broker, or other mortgage loan originator
				or by any agent of such a lender, mortgage broker, or other mortgage loan
				originator. For purposes of this chapter, the term "real estate brokerage
				activity" means any activity that involves offering or providing real estate
				brokerage services to the public, including:
(a) Acting as a real estate agent or real
			 estate broker for a buyer, seller, lessor, or lessee of real
			 property;
(b) Bringing together
			 parties interested in the sale, purchase, lease, rental, or exchange of real
			 property;
(c) Negotiating, on
			 behalf of any party, any portion of a contract relating to the sale, purchase,
			 lease, rental, or exchange of real property, other than in connection with
			 providing financing with respect to any such transaction;
(d) Engaging in any activity for which a
			 person engaged in the activity is required to be registered or licensed as a
			 real estate agent or real estate broker under any applicable law; and
(e) Offering to engage in any activity, or
			 act in any capacity, described in (a) through (d) of this definition.
"Loan originator" does not include a person or entity solely
				involved in extensions of credit relating to timeshare plans, as that term is
				defined in Sec. 101(53D) of Title 11, U.S.C.
The definition of loan originator does not apply to employees
				of a housing counseling agency approved by the United States Department of
				Housing and Urban Development unless the employees of a housing counseling
				agency are required under federal law to be licensed individually as loan
				originators.