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 › MORTGAGE BROKERS › Section 208-660-155 - Mortgage brokers-General

Current through Register Vol. 24-14, July 15, 2024
(1)
May I originate residential mortgage loans in Washington without a
						license?
No. Mortgage brokers must have a valid Washington license, or
						be exempt from licensing pursuant to
						RCW
						   19.146.020, and must maintain a sponsored
						loan originator who is approved by the director, in order to originate
						residential mortgage loans or conduct residential mortgage loan modification
						services. There is no "one-time, one loan" exception.
(2)
May I originate a Washington
						residential mortgage loan using the license of an already licensed or exempt
						Washington mortgage broker and then split the proceeds with that mortgage
						broker?
No. Mortgage broker licenses may only be used by the person
						named on the license. Mortgage broker licenses may not be transferred, sold,
						traded, assigned, loaned, shared, or given to any other person. Two
						individually licensed mortgage brokers may originate a loan. Each licensee is
						itemized in the disclosures and is paid their proportionate share of fees in
						relation to the work provided at the loan closing. Federal laws may prohibit
						this cobrokering.
(3)
Do I
						need a license to assist a borrower with a residential mortgage loan
						modification?
Yes. Persons providing loan modification services for
						compensation or gain must be licensed under this chapter, or under
						chapter
						31.04 RCW. See also WAC
						208-660-430(23),
						208-660-500(4),
						208-660-550(3)(c) and
						(4).
(4)
As a licensed mortgage broker, am I
						responsible for the actions of my employees and independent contractors?
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.
(5)
Who at the licensed mortgage broker
						company is responsible for the licensee's compliance with the act and these
						rules?
The designated broker, principals, and owners with supervisory
						authority are responsible for the licensee's compliance with the act and these
						rules.
(6)
What is the nature
						of my relationship with the borrower?
You have a fiduciary relationship
						with the borrower. See
						RCW
						   19.146.095.
(7)
May I charge upfront broker fees
						when assisting the borrower in applying for a loan?
No. You may only
						charge the borrower a fee, commission, or other compensation for the
						preparation, negotiation, and brokering of a residential mortgage loan when the
						loan is closed on the terms and conditions agreed upon by you and the
						borrower.
(8)
May I charge
						fees when the loan does not close, or does not close on the terms and
						conditions agreed upon by me and the borrower?
You may charge a fee, and
						may bring a suit for collection of the fee, not to exceed three hundred
						dollars, for services rendered, for the preparation of documents, or for the
						transfer of documents in the borrower's file which were prepared for, or paid
						for by, the borrower if:
(a) You have obtained
						a written commitment from a lender on the same terms and conditions agreed upon
						by you and the borrower; and
(b)
						The borrower fails to close on a loan through no fault of yours; and
(c) The fee is not otherwise prohibited by
						the Truth in Lending Act.