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 208-660-006 - Definitions

Current through Register Vol. 24-14, July 15, 2024
What definitions are applicable to these rules?
Unless the context clearly requires otherwise, the definitions in this section
				apply throughout these rules.
(1)
			 "Act" means the Mortgage Broker Practices Act, chapter 19.146 RCW.
(2) "Advertising material" means any form of
			 sales or promotional materials used in connection with the mortgage broker
			 business. Advertising material includes, but is not limited to, newspapers,
			 magazines, leaflets, flyers, direct mail, indoor or outdoor signs or displays,
			 point-of-sale literature or educational materials, other printed materials;
			 radio, television, public address system, or other audio broadcasts; or
			 internet pages or social media pages.
(3) "Application" means the submission of a
			 borrower's financial information in anticipation of a credit decision relating
			 to a residential mortgage loan, which includes the borrower's name, monthly
			 income, Social Security number to obtain a credit report, the property address,
			 an estimate of the value of the property, and the mortgage loan amount sought.
			 An application may be in writing or electronically submitted, including a
			 written record of an oral application. If the submission does not state or
			 identify a specific property, the submission is an application for a
			 prequalification and not an application for a residential mortgage loan under
			 this part. The subsequent addition of an identified property to the submission
			 converts the submission to an application for a residential mortgage
			 loan.
(4) "Appraisal" means the act
			 or process of developing an opinion of value, the act pertaining to an
			 appraisal-related function, or any verbal or written opinion of value offered
			 by an appraiser. The opinion of value by the appraiser includes any
			 communication that is offered as a single point, a value range, a possible
			 value range, exclusion of a value, or a minimum value.
(5) "Branch office" means a fixed physical
			 location such as an office, separate from the principal place of business of
			 the licensee, where the licensee holds itself out as a mortgage
			 broker.
(6) "Branch office license"
			 means a branch office license issued by the director allowing the licensee to
			 conduct a mortgage broker business at the location indicated on the
			 license.
(7) "Business day" means
			 Monday through Friday excluding federally recognized bank holidays.
(8) "Compensation or gain" means
			 remuneration, benefits, or an increase in something having monetary value
			 including, but not limited to, moneys, things, discounts, salaries,
			 commissions, fees, duplicate payments of a charge, stock, dividends,
			 distributions of partnership profits, franchise royalties, credits representing
			 moneys that may be paid at a future date, the opportunity to participate in a
			 money-making program, retained or increased earnings, increased equity in a
			 parent or subsidiary entity, special or unusual bank or financing terms,
			 services of all types at special or free rates, sales or rentals at special
			 prices or rates, lease or rental payments based in whole or in part on the
			 amount of business referred, trips and payments of another person's expenses,
			 or reduction in credit against an existing obligation. "Compensation or gain"
			 is not evaluated solely on a loan by loan basis.
For example, a realtor advertising that buyers using their
				services will receive free loan origination assistance is doing so in the
				anticipation of "compensation or gain" through increased real estate
				business.
(9) "Computer loan
			 information systems" or "CLI system" means a real estate mortgage financing
			 information system that facilitates the provision of information to consumers
			 by a mortgage broker, loan originator, lender, real estate agent, or other
			 person regarding interest rates and other loan terms available from different
			 lenders.
For purposes of this definition, the CLI system includes
				computer hardware or software, an internet-based system, or any combination of
				these, which provides information to consumers about residential mortgage
				interest rates and other loan terms which are available from another
				person.
(10) "Computer loan
			 information system provider" or "CLI provider" is any person who provides a
			 computer loan information service, either directly, or as an owner-operator of
			 a CLI system, or both.
(11)
			 "Consumer Protection Act" means chapter 19.86 RCW.
(12) "Control" including the terms
			 "controls," "is controlled by," or "is under common control" means the power,
			 directly or indirectly, to direct or cause the direction of the management or
			 policies of a person, whether through ownership of the business, by contract,
			 or otherwise. A person is presumed to control another person if such person is:
(a) A general partner, officer, director, or
			 employer of another person;
(b)
			 Directly or indirectly or acting in concert with others, or through one or more
			 subsidiaries, owns, holds with power to vote, or holds proxies representing,
			 more than 20 percent of the voting interests of another person; or
(c) Has similar status or function in the
			 business as a person in this definition.