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 › INFORMATION SECURITY › Section 208-620-571 - Information security program required by the federal Safeguards Rule implementing the Gramm-Leach-Bliley Act

Current through Register Vol. 24-14, July 15, 2024
(1) Generally, applicants and licensees must
						have a written program appropriate to the company's size and complexity, the
						activity conducted, and the sensitivity of information at issue. The program
						must ensure the information's security and confidentiality, protect against
						anticipated threats or hazards to the security or integrity of the information,
						and protect against unauthorized access to or use of the information.
(2) Specifically, at a minimum the plan
						described in subsection (1) of this section must:
(a) Designate an employee or employees to
						coordinate the information security program;
(b)Identify and assess the risks to customer
						information;
(c) Design and
						implement information safeguards to control the risks identified in the risk
						assessment and regularly monitor and test the safeguards;
(d) Select service providers that can
						maintain appropriate safeguards and oversee their handling of customer
						information; and
(e) At least
						annually evaluate and adjust the program in light of relevant circumstances,
						including changes in business or operations, or the results of testing and
						monitoring the effectiveness of the implemented safeguards.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › INFORMATION SECURITY › Section 208-620-572 - Consumer financial information privacy under the Gramm-Leach-Bliley Act (GLBA) and Regulation P

Current through Register Vol. 24-14, July 15, 2024
(1)
						Licensees must comply with GLBA, as amended, and Regulation P. Unless subject
						to an exception under GLBA, as amended, licensees must at a minimum:
(a) Provide customers with initial and annual
						notices regarding their privacy policies. These notices describe whether and
						how the licensee shares consumers' nonpublic personal information, including
						personally identifiable financial information, with other entities;
						and
(b) If licensees share certain
						customer information with particular types of third parties, the institutions
						are also required to provide notice to their customers and an opportunity to
						opt out of the sharing. If a licensee limits its types of sharing to those
						which do not trigger opt-out rights, it may provide a "simplified" annual
						privacy notice to its customers that does not include opt-out information. If a
						licensee's compliant privacy policy has not changed, additional notices may not
						be required.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › INFORMATION SECURITY › Section 208-620-573 - Notice to consumers of data breach

Current through Register Vol. 24-14, July 15, 2024
If the licensee's data is compromised, the licensee may be
							subject to chapter 19.255 RCW and may have to provide notices to consumers
							whose information was acquired. Under certain circumstances notice of the
							breach may also be required to the attorney general's office.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › EXAMINATIONS › Section 208-620-580 - As a licensee, will my business be subject to periodic examinations?

Current through Register Vol. 24-14, July 15, 2024
(1) Licensees can
						expect to be visited periodically by the department's examiners. The director
						or designee may examine, wherever located, the records used in the business of
						every licensee and of every person who is engaged in the consumer loan
						business, whether the person acts or claims to act as principal or agent, or
						under or without the authority of this chapter. For that purpose the director
						or designee shall have free access, at reasonable times during business hours,
						to the offices and places of business and all books and records of the
						business.
(2) When directed to do
						so during an examination licensees must provide information on the
						characteristics of loan originations in a format prescribed by the
						director.
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, §
											208-620-580, 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 › EXAMINATIONS › Section 208-620-585 - Compliance management system (CMS)

Current through Register Vol. 24-14, July 15, 2024
Your CMS must contain, at a minimum, the following
							functionalities:
(1) Board and
						management oversight; and
(2)
						Compliance program, which includes:
(a)
						Policies and procedures;
(b)
						Training;
(c) Monitoring and/or
						audit; and
(d) Consumer complaint
						response.
For the details of each component, see the
Supervision and Examination Manual
from the Consumer Financial
							Protection Bureau (CFPB) at the following link:
							https://www.consumerfinance.gov/policy-compliance/guidance/supervision-examinations/.
							The CMS-specific procedures can be used by an entity to self-assess the
							effectiveness of its CMS.
Your CMS must be maintained as part of your books and
							records.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › EXAMINATIONS › Section 208-620-590 - How much will I be charged for my examinations and when will the payment be due?

Current through Register Vol. 24-14, July 15, 2024
(1) You will be
						charged $69.01 per hour for examinations of your records.
(2) If the examination occurs outside of
						Washington, you will be charged the hourly rate plus travel costs.
(3) You must pay examination costs within
						thirty days after receiving the invoice to avoid having to pay accrued
						interest.
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, §
											208-620-590, 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 › EXAMINATIONS › Section 208-620-600 - How often will the department visit my business to examine my records?

Current through Register Vol. 24-14, July 15, 2024
There is no set schedule to examine each licensee. Licensees
							will be examined on a flexible schedule based upon the potential risk of the
							business to the public.
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, §
											208-620-600, 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 › EXAMINATIONS › Section 208-620-601 - What assistance may the department seek in conducting an investigation or examination of my business?

Current through Register Vol. 24-14, July 15, 2024
In order to carry out the purposes of
							RCW
							   31.04.145, the director may:
(1) Retain attorneys, accountants, or other
						professionals and specialists as examiners, auditors, or investigators to
						conduct or assist in the conduct of examinations or investigations;
(2) Enter into agreements or relationships
						with other government officials or regulatory associations in order to improve
						efficiencies and reduce regulatory burden by sharing resources, standardized or
						uniform methods or procedures, and documents, records, information, or evidence
						obtained under this section;
(3)
						Use, hire, contract, or employ public or privately available analytical
						systems, methods, or software to examine or investigate the licensee,
						individual, or person subject to this act;
(4) Accept and rely on examination or
						investigation reports made by other government officials, within or without
						this state;
(5) Accept audit
						reports made by an independent certified public accountant for the licensee,
						individual, or person subject to this act in the course of that part of the
						examination covering the same general subject matter as the audit and may
						incorporate the audit report in the report of the examination, report of
						investigation, or other writing of the director; or
(6) Assess the licensee, individual, or
						person subject to this act the cost of the services in this
						subsection.
Statutory Authority:
								RCW
								43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-601, 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 › INVESTIGATIONS › Section 208-620-610 - What authority does the department have to investigate violations of the Consumer Loan Act?

Current through Register Vol. 24-14, July 15, 2024
(1) The
						director may enforce all laws and rules relating to the licensing and
						regulation of licensees and persons subject to this chapter.
(2) The director may impose fines of up to
						one hundred dollars per day, per violation, upon the licensee, its employees or
						loan originators, or other persons subject to this chapter for any violation of
						this chapter or for failure to comply with any order or subpoena issued by the
						director under this chapter.
(3)
						Each day's continuance of the violation is a separate and distinct
						offense.
(4)
Testimony.
The director or designees may require the attendance of
						and examine under oath all persons whose testimony may be required about the
						loans or the business or the subject matter of any investigation, examination,
						or hearing.
(5)
Production of
						records or copies.
The director or designee may require the production
						of books, accounts, papers, records, files, and any other information deemed
						relevant to the inquiry. The director may require the production of original
						books, accounts, papers, records, files, and other information; may require
						that such original books, accounts, papers, records, files, and other
						information be copied; or may make copies himself or herself or by designee of
						such original books, accounts, papers, records, files, or other
						information.
(6)
Subpoena
						authority.
If a licensee or person does not attend and testify, or does
						not produce the requested books, accounts, papers, records, files, or other
						information, then the director or designated persons may issue a subpoena or
						subpoena duces tecum requiring attendance or compelling production of the
						books, accounts, papers, records, files, or other information.
(7) The director may collect an investigation
						fee. Licensees will be charged sixty-nine dollars and one cent per hour for the
						investigation.
Statutory Authority:
								RCW
								   43.320.040 and
								31.04.165. 12-18-047, §
											208-620-610, filed 8/29/12,
								effective 11/1/12. 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, §
											208-620-610, 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 › INVESTIGATIONS › Section 208-620-611 - What federal guidance has the director adopted for use by the department in determining if a violation under RCW 31.04.027 has occurred?

Current through Register Vol. 24-14, July 15, 2024
The director has adopted:
(1) The Conference of State Bank Supervisors
						and American Association of Residential Mortgage Regulators "
Guidance
						on Nontraditional Mortgage Product Risks
" (released November 14,
						2006); and
(2) The Conference of
						State Bank Supervisors, American Association of Residential Mortgage
						Regulators, and National Association of Consumer Credit Administrators
						"
Statement on Subprime Mortgage Lending
," effective July 10,
						2007 (published in the Federal Register at Vol. 72, No. 131).
Statutory Authority:
								RCW
								43.320.040,
								19.144.070, 2008 c 78. 09-01-159,
								§
											208-620-611, filed 12/23/08,
								effective 1/23/09. Statutory Authority:
								RCW
								43.320.040. 08-15-125, §
											208-620-611, filed 7/22/08,
								effective 8/22/08.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › INVESTIGATIONS › Section 208-620-612 - What must I do to comply with the federal guidelines on nontraditional mortgage loan product risks and statement on subprime lending?

Current through Register Vol. 24-14, July 15, 2024
You must adopt written policies and procedures implementing
							the federal guidelines. The policies and procedures must be maintained as a
							part of your books and records and must be made available to the department
							upon request.
Statutory Authority:
								RCW
								43.320.040,
								19.144.070, 2008 c 78. 09-01-159,
								§
											208-620-612, filed 12/23/08,
								effective 1/23/09.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › INVESTIGATIONS › Section 208-620-614 - What Washington law protects my rights when my license is suspended or revoked?

Current through Register Vol. 24-14, July 15, 2024
The Administrative Procedure Act,
							chapter
							34.05 RCW, governs the
							proceedings for license application denials, cease and desist orders, license
							suspension or revocation, the imposition of civil penalties or other remedies
							ordered by the department, and any appeals or reviews of those
							actions.
Statutory Authority:
								RCW
								43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-614, 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 › INVESTIGATIONS › Section 208-620-615 - Application of the Administrative Procedure Act

Current through Register Vol. 24-14, July 15, 2024
(1) What are my rights when the department
						begins an administrative enforcement action against me? Under the
						Administrative Procedure Act (APA),
						chapter
						34.05 RCW, you have the
						right to request a hearing on the agency's action. Hearings are conducted as
						either formal adjudicative proceedings or may, under certain circumstances, be
						handled as a brief adjudicative proceeding (BAP).
(2) What must I do when I want to request a
						hearing? When you are notified of administrative charges filed against you, you
						are also notified of your right to request a hearing. At that time, the
						department will also notify you as to whether the hearing will be conducted as
						a brief adjudicative proceeding. You are required to notify the department, in
						writing, within twenty days from the date of the director's notice to you
						notifying you of the enforcement action against you. This notice must be
						received by the department by the 20th day following service of the charges on
						you.
(3) What is a brief
						adjudicative proceeding? Under the APA, a brief adjudicative proceeding is a
						hearing that is less formal in nature and typically resolves the charges
						quickly. The department provides a BAP for violations of the act in which the
						facts are undisputed and under circumstances where the parties may present
						their case without the need for witnesses. Typical matters to be heard in a BAP
						include, but are not limited to, license denials or revocations based on
						certain undisputed facts, including criminal convictions or misrepresentations
						on an application.
(4) May I
						request a brief adjudicative proceeding in response to an administrative
						enforcement action? Yes, but only if the matter has been designated by the
						department as one for which a BAP is available. The director adopts
						RCW
						   34.05.482 through
						34.05.494 for the administration
						of brief adjudicative proceedings. Brief adjudicative proceedings may be
						limited to a determination of one or more of the following issues:
(a) Whether an applicant for a loan
						originator license meets the requirements of
						RCW
						   31.04.247;
(b) Whether an applicant for a consumer loan
						company license meets the requirements of
						RCW
						   31.04.045; and
(c) Whether a consumer loan company has
						failed to maintain the bond required by
						RCW
						   31.04.045(6).
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › ADVERTISING RESTRICTIONS › Section 208-620-620 - How do I have to identify my business when I advertise?

Current through Register Vol. 24-14, July 15, 2024
You must identify the business using your Washington consumer
				  loan name as entered in the NMLS. You may also use an approved DBA name if you
				  include the main office name as entered in the NMLS or license number. For use
				  of URL addresses and web pages, see WAC 208-620-621 and
				  208-620-622.
Statutory Authority:
								RCW
								   43.320.040 and
								31.04.165. 12-18-047, §
											208-620-620, filed 8/29/12,
								effective 11/1/12. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-620, 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, §
											208-620-620, 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, §
											208-620-620, 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 › ADVERTISING RESTRICTIONS › Section 208-620-621 - May I advertise over the internet using a URL address that is not my licensed business name?

Current through Register Vol. 24-14, July 15, 2024
Yes, provided that the URL address does not misrepresent the
				  identity of your company or contain any misleading, deceptive, or otherwise
				  prohibited language. URL addresses may be used as DBA names upon request to and
				  approval from DFI. See also WAC 208-620-620 and 208-620-622.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-621, 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 › ADVERTISING RESTRICTIONS › Section 208-620-622 - When advertising using the internet or any electronic form (including, but not limited to, text messages), is there specific content the advertisements must contain?

Current through Register Vol. 24-14, July 15, 2024
Yes. Companies, including branches, and loan originators must
				  provide the following language, in addition to any other, on web pages, social
				  media pages the licensee controls, or in any medium where the licensee holds
				  themselves out as being able to provide the services:
(1) The company's name as entered in the NMLS, the company's license number, and a link to the company's NMLS consumer
				access website page must be displayed on the company's and any loan
				originator's primary landing page.
(2) If loan originators are named, their
				license numbers must closely follow the names. An example of closely following
				is: Your license name followed by your title (if you use one) followed by your
				license number. See the definition of license number for ways to display your
				license number. See WAC 208-620-710(26).
(3) If the company uses a DBA, the page must
				also contain the company's name as entered in the NMLS or license
				number.
(4) Compliance with other
				laws. Website content used to solicit Washington consumers must comply with all
				relevant Washington state and federal laws for specific services and products
				advertised on the website.
(5)
				Oversight. The company is responsible for content displayed on all electronic
				advertisements used to solicit Washington consumers.
Statutory Authority:
								RCW
								   43.320.040 and
								31.04.165. 12-18-047, §
											208-620-622, filed 8/29/12,
								effective 11/1/12. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-622, 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 › ADVERTISING RESTRICTIONS › Section 208-620-630 - What are some of the advertising restrictions I must comply with?

Current through Register Vol. 24-14, July 15, 2024
(1)
Licensees are prohibited from
				advertising with envelopes or stationery, or using images in an electronic
				format, that are designed to resemble a government mailing or other method of
				communication that suggest an affiliation that does not exist. Some examples of
				emblems or government-like names, language, or nonexistent affiliations that
				will violate the state and federal advertising laws include, but are not
				limited to:
(a) Characterizing products
				as "government loan programs," "government-supported loans," or other words
				that may mislead a consumer into believing that the government is guaranteeing,
				endorsing, or supporting the advertised loan product. Using the words "FHA
				loan," "VA loan," or words for other products that are in fact endorsed or
				sponsored by a federal, state, or local government entity is allowed.
(b) An official-looking emblem such as an
				eagle, the Statue of Liberty, or a crest or seal that resembles one used by any
				state or federal government agency.
(c) Envelopes or electronic communications
				designed to resemble official government communications, such as IRS or U.S.
				Treasury envelopes, or other government mailers or electronic
				communications.
(d) Warnings or
				notices citing government codes or form numbers not required by the U.S.
				Postmaster to be shown on the communication.
(e) The use of the term "official business,"
				or similar language implying official or government business, without also
				including the name of the sender.
(f) Any suggestion or representation that the
				licensee is, or is affiliated with, a state or federal agency, municipality,
				bank, savings bank, trust company, savings and loan association, building and
				loan association, credit union, or other entity that it does not actually
				represent.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › ADVERTISING RESTRICTIONS › Section 208-620-640 - What are some of the federal laws I must comply with when I advertise any loan subject to the Consumer Loan Act?

Current through Register Vol. 24-14, July 15, 2024
You must comply with all the applicable advertising
							requirements under the federal statutes and regulations including, but not
							limited to, the Truth in Lending Act, the Real Estate Settlement Procedures
							Act, the Federal Trade Commission Act, the Telemarketing and Consumer Fraud and
							Abuse Act, Mortgage Acts and Practices -Advertising statute, Regulation N,  12
							C.F.R. Part 1014, and the Equal Credit Opportunity Act.
Statutory Authority:
								RCW
								   43.320.040,
								31.04.165,   2009 c  120, and   2009 c
								 149. 09-24-090, §
											208-620-640, filed 12/1/09,
								effective 1/1/10. Statutory Authority:
								RCW
								   43.320.040. 08-15-125, §
											208-620-640, 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, §
											208-620-640, 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 › MISCELLANEOUS › Section 208-620-650 - Will the director waive fees charged under the Consumer Loan Act?

Current through Register Vol. 24-14, July 15, 2024
The director or designee may waive any or all of the fees and
							assessments under this chapter when he or she determines that:
(1) The financial services regulation account
						exceeds the projected minimum fund balance level approved by the office of
						financial management; and
(2) That
						the waiver is fiscally prudent.
Statutory Authority:
								RCW
								43.320.040. 08-15-125, §
											208-620-650, 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, §
											208-620-650, 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 › MISCELLANEOUS › Section 208-620-660 - What is required for a Washington licensed loan originator to work from their residence without licensing the residence as a branch location?

Current through Register Vol. 24-14, July 15, 2024
A licensed company may permit a sponsored and licensed loan
				  originator to work from the loan originator's residence without licensing it as
				  a branch location under RCW     31.04.075 and subject to the following
				  conditions:
(1) The company must have
				written policies and procedures that include appropriate risk-based monitoring
				and oversight processes for the supervision of loan originators working from
				their residence without licensing it as a branch location. The loan originator
				must comply with the licensee's policies and procedures.
(2) Access to the company platforms and
				customer information must be in accordance with the licensee's comprehensive
				written information security plan, as required by WAC 208-620-571, which must
				include safeguards that protect borrower information.
(3) Communications that contain a customer's
				protected personal information must be in compliance with federal and state
				information security requirements, including the applicable provisions under
				the Gramm-Leach-Bliley Act and the Safeguards Rule. See WAC 208-620-571 and
				208-620-572 for more information.
(4) The loan originator's residence may not
				be held out in any manner, directly or indirectly, as a licensed main or branch
				location unless it is licensed as a main or branch location. The following is
				not allowed at the loan originator's residence unless it is licensed as a main
				or branch location:
(a) Conducting in-person
				customer interactions;
(b) Storing
				physical records containing customer information;
(c) Receiving physical records containing
				customer information; and
(d)
				Advertising the location as a licensed main or branch office.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › MORTGAGE LOAN ORIGINATOR LICENSING › Section 208-620-715 - Temporary authority to originate loans

Current through Register Vol. 24-14, July 15, 2024
(1)
What is temporary authority to originate loans?
Temporary
				authority to act as a loan originator permits qualified MLOs who are changing
				employment from a depository institution to a state-licensed mortgage company
				and qualified state-licensed MLOs seeking licensure in another state, to
				originate loans while completing any state-specific requirements for licensure.
				See WAC 208-620-730.
(2)
Who
				is eligible for temporary authority?
An MLO that is:
(a) Employed and sponsored through NMLS by a
				state-licensed mortgage company; and
(b) either:
(i) Registered in NMLS as an MLO during the
				one year preceding the application submission; or
(ii) licensed as an MLO during the thirty-day
				period preceding the date of application.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › MORTGAGE LOAN ORIGINATOR LICENSING › Section 208-620-720 - Loan originator - Prelicensing education

Current through Register Vol. 24-14, July 15, 2024
Must I complete prelicensing education in order to
							receive a loan originator license?
Yes.
(1) You must complete at least twenty-two
						hours of pre-licensing education approved by the NMLS. The prelicensing
						education must include:
(a) Three hours of
						federal law and regulations;
(b)
						Three hours of ethics, which includes instruction on fraud, consumer
						protection, and fair lending issues;
(c) Two hours of training related to lending
						standards for the nontraditional mortgage product marketplace; and
(d) At least four hours of training
						specifically related to Washington law.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › MORTGAGE LOAN ORIGINATOR LICENSING › Section 208-620-725 - Mortgage loan originator - Testing

Current through Register Vol. 24-14, July 15, 2024
Must I pass a test prior to becoming a loan
							originator?
Yes.
(1) You must
						take and pass the NMLS sponsored loan originator test. The test has two parts;
						one on federal law and regulation and one on uniform state law and regulation.
						You must receive a score of seventy-five percent or higher to pass the
						test.
(2)
Where may I find
						information about the loan originator test?
The NMLS web site will
						publish the names and contact information of approved testing
						providers.
(3)
How much does
						the loan originator test cost?
Testing costs are set by the test
						provider and the NMLS and may be modified from time to time. The NMLS web site
						will publish the current testing fee with the testing provider contact
						information.
(4)
How do I
						register to take the loan originator test?
Register through the NMLS web
						site.
(5)
What topics may be
						covered in the loan originator test?
At a minimum, the test topics will
						include ethics, federal and state law and regulation pertaining to mortgage
						origination, federal and state law and regulation on fraud, consumer
						protection, nontraditional mortgage products, and fair lending.
(6)
After passing the loan originator
						test, will I have to take it again?
If you fail to maintain a valid
						license for a period of five years or longer you must retake the test, not
						taking into account any time during which you were a registered mortgage loan
						originator.
(7)
How soon
						after failing the loan originator test may I take it again?
After taking
						and failing the test you must wait thirty days before taking it again. After
						failing three consecutive times, you must then wait at least six months before
						taking the test again.
Statutory Authority: Chapter 43.320 RCW and
								RCW
								31.04.165. 13-06-012, §
											208-620-725, filed 2/25/13,
								effective 4/1/13. Statutory Authority:
								RCW
								   43.320.040 and
								31.04.165. 12-18-047, §
											208-620-725, filed 8/29/12,
								effective 11/1/12. Statutory Authority:
								RCW
								   43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-725, 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, §
											208-620-725, 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 › MORTGAGE LOAN ORIGINATOR LICENSING › Section 208-620-730 - Loan originator - Continuing education

Current through Register Vol. 24-14, July 15, 2024
(1)
How many clock hours of loan
						originator continuing education must I have each year?
You must complete
						a minimum of eight hours of continuing education approved by the NMLS which
						must include at least three hours of federal law and regulations; two hours of
						ethics (which must include instruction on fraud, consumer protection, and fair
						lending issues); and two hours of training related to lending standards for the
						nontraditional mortgage product marketplace. Additionally, the director may
						require at least one hour of continuing education on Washington law provided by
						and administered through an approved provider.
(2)
As a loan originator, may I take
						the same approved course multiple times to meet my annual continuing education
						requirement?
No. You may not take the same approved course in the same
						or successive years to meet the annual requirements for continuing
						education.
(3)
If I teach an
						approved continuing education course may I use my course as credit toward my
						annual loan originator continuing education requirement?
Yes. As an
						instructor of an approved continuing education course, you may receive credit
						for your annually required loan originator continuing education courses from
						the course(s) you teach. You will receive credit at the rate of one course
						taught equaling two continuing education course credits.
(4)
If I accumulate more than the
						required loan originator continuing education course credits during a year, may
						I carry-over the excess credit to the next year?
No. Continuing
						education credits only apply to the year in which they are taken.
(5)
If I fail to complete the required
						continuing education, what happens to my loan originator license?
When
						your license expires, the department will not renew it, and you cannot continue
						conducting any business under the act. See WAC
						208-620-710 to renew your license
						if you miss the December 31st renewal deadline.
(6)
How will I know which courses and
						providers satisfy the continuing education requirement?
NMLS will
						publish information about approved continuing education providers on their web
						site.
(7)
How do I provide
						the department with proof of the continuing education courses I have
						completed?
The course provider will report your continuing education to
						the NMLS and DFI will have access to that information.
Statutory Authority:
								RCW
								43.320.040 and
								31.04.165. 12-18-047, §
											208-620-730, 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, §
											208-620-730, 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 › PROPRIETARY REVERSE MORTGAGE PRODUCTS › Section 208-620-800 - What definitions are applicable to proprietary reverse mortgage products under the act?

Current through Register Vol. 24-14, July 15, 2024
(1) Advance. A
						payment from the lender to the borrower.
(2) "FHA-approved reverse mortgage" means a
						"home equity conversion mortgage" or other reverse mortgage product guaranteed
						or insured by the federal department of Housing and Urban
						Development.
(3) "Owner-occupied
						residence" is the borrower's residence and includes a life estate property the
						legal title for which is held in the name of the borrower in a reverse mortgage
						transaction or in the name of a trust, provided the occupant of the property is
						the beneficiary of that trust.
(4)
						"Proprietary reverse mortgage loan" is any reverse mortgage loan product that
						is not a home equity conversion mortgage loan or other federally guaranteed or
						insured loan.
(5) "Reverse mortgage
						broker or lender" means a licensee under the Washington state Consumer Loan
						Act, chapter 31.04
						RCW, or a person exempt from licensing pursuant to federal law.
(6)"Reverse mortgage loan" means a
						nonrecourse consumer credit obligation in which:
(a) A mortgage, deed of trust, or equivalent
						consensual security interest is created in the borrower's dwelling securing one
						or more advances;
(b) Any
						principal, interest, or shared appreciation or equity is due and payable, other
						than in the case of default, only after:
(i)
						The consumer dies;
(ii) The
						dwelling is transferred; or
(iii)
						The consumer ceases to occupy the dwelling as a dwelling; and
(c) The broker or lender is
						licensed under Washington state law or exempt from licensing under federal
						law.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › PROPRIETARY REVERSE MORTGAGE PRODUCTS › Section 208-620-805 - Does this part (WAC 208-620-800 through 208-620-850) apply to the FHA approved home equity conversion mortgage (HECM) product?

Current through Register Vol. 24-14, July 15, 2024
No. WAC
							208-620-800 through
							208-620-850 do not apply to the
							HECM product or to any federally administered reverse mortgage
							product.
Statutory Authority:
								RCW
								43.320.040 and
								31.04.165. 12-18-047, §
											208-620-805, 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, §
											208-620-805, 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 › PROPRIETARY REVERSE MORTGAGE PRODUCTS › Section 208-620-810 - What requirements must I meet before offering or making proprietary reverse mortgages to Washington residents?

Current through Register Vol. 24-14, July 15, 2024
You must meet the following requirements before offering
							proprietary reverse mortgage loans to Washington residents:
(1) Obtain and maintain an irrevocable
						standby letter of credit in your favor in an amount necessary to fund all
						reverse mortgage loan requirements anticipated over the next twelve months for
						loans on your books plus those expected to be made over the next twelve months,
						or three million dollars, whichever is greater. The initial term of the letter
						of credit must be at least two years. The letter of credit must be from a
						financial institution approved by the director.
(a) The financial institution that provides
						the letter of credit required in subsection (1) of this section may not be
						affiliated with you.
(b) If you
						have had a rating of either 4A1 or 5A1 from Dun & Bradstreet credit
						services for three consecutive years you are exempt from the requirements in
						subsection (1) 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 › PROPRIETARY REVERSE MORTGAGE PRODUCTS › Section 208-620-820 - What specific loan terms and conditions are allowed or required in the proprietary reverse mortgages I make to Washington residents?

Current through Register Vol. 24-14, July 15, 2024
(1) Loan
						prepayment.
(a) Prepayment, in whole or in
						part, or the refinancing of a reverse mortgage loan, must be permitted without
						penalty at any time during the term of the reverse mortgage loan. For the
						purposes of this subsection, penalty means an amount of money charged to the
						borrower in addition to any fees, payments, or other charges, not including
						interest, that would have otherwise been due upon the reverse mortgage being
						due and payable. However, when a reverse mortgage lender has paid or waived all
						of the usual fees or costs associated with a reverse mortgage loan, a
						prepayment penalty may be imposed, provided the penalty does not exceed the
						total amount of the usual fees or costs that were initially absorbed or waived
						by the reverse mortgage lender.
(b)
						You may not impose a prepayment penalty under this subsection if the prepayment
						is caused by the occurrence of the death of the borrower.
(c) If a prepayment penalty is imposed under
						the circumstances described in (a) of this subsection you must disclose the
						prepayment penalty to the borrower.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › PROPRIETARY REVERSE MORTGAGE PRODUCTS › Section 208-620-825 - What reverse mortgage program information must I submit to the director for approval before offering or making proprietary reverse mortgages?

Current through Register Vol. 24-14, July 15, 2024
(1) A description
						of all proprietary reverse mortgage products available to borrowers.
(2) A copy of each proprietary loan product
						contract.
(3) A copy of all
						disclosures provided to borrowers for all proprietary reverse mortgage
						products.
(4) A copy of the
						projected total cost of credit disclosure provided to borrowers. The projected
						total cost of credit disclosure must reflect at a minimum the following
						factors, as applicable:
(a) All costs and
						charges to the consumer;
(b) All
						advances to and for the benefit of the consumer;
(c) Any shared appreciation or equity in the
						dwelling that you are entitled to receive under the contract to
						receive;
(d) Any limitation on the
						consumer's liability (such as nonrecourse limits and equity conservation
						agreements);
(e) Each of the
						assumed annual appreciation rates for the dwelling:
(i) Zero percent;
(ii) Four percent;
(iii) Eight percent.
(f) Each of the following assumed loan
						periods:
(i) Two years;
(ii) The actuarial life expectancy of the
						consumer to become obligated on the reverse mortgage transaction (as of the
						consumer's most recent birthday). If there is more than one consumer, the
						period must be the actuarial life expectancy of the youngest consumer as of
						that consumer's most recent birthday.
(g) Reserved.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-620 - Washington Consumer Loan Act › PROPRIETARY REVERSE MORTGAGE PRODUCTS › Section 208-620-830 - What disclosures or statements must I provide to a borrower in a reverse mortgage transaction?

Current through Register Vol. 24-14, July 15, 2024
In addition to any disclosures required by federal law, you
							must provide, at a minimum, the following:
(1) Counseling disclosure. You must provide
						the following plain language statement in conspicuous bold sixteen-point type
						or larger, prior to receiving a complete and final loan application: "Important
						notice to reverse mortgage loan applicant: A reverse mortgage is a complex
						financial transaction that provides a means of using the equity you have built
						up in your home, or the value of your home, as a way to access home equity. If
						you decide to obtain a reverse mortgage loan, you will sign binding legal
						documents that will have important legal, tax, and financial implications for
						you and your estate. It is very important for you to understand the terms of
						the reverse mortgage and its effect. Before entering into this transaction, you
						are required by law to consult with an independent loan counselor. A list of
						approved counselors will be provided to you by the lender or broker. You may
						also want to discuss your decision with family members or others on whom you
						rely for financial advice."
(2)
						Loan statements. You or the loan servicer must provide an annual, or more
						frequent, disclosure statement to the borrower, providing details of the loan
						advances, balance, other terms, and the name and telephone number of the
						lender's employee or agent who has been specifically designated to respond to
						inquiries concerning reverse mortgage loans.
(3) Benefits and tax disclosure. You must
						provide the following statement prior to or simultaneously with receiving an
						initial loan application:
"If you receive advances under the terms of a reverse
							mortgage, you may lose your right to receive certain public funds, such as
							Medicaid, and possibly others. Also, receiving advances under the terms of a
							reverse mortgage may have tax consequences for you. You may wish to obtain
							advice from a tax professional or an attorney before you decide on a reverse
							mortgage."
Statutory Authority:
								RCW
								43.320.040,
								31.04.165 and   2010 c  35.
								10-20-122, §
											208-620-830, 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, § 208-660-830 [208-620-830], filed 12/1/09, effective
								1/1/10.