reglab/statecodes huggingface dataset:
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 208-660-106 - How does the department interpret the definition of loan processor in RCW 19146010(12)?

Current through Register Vol. 24-14, July 15, 2024
"Loan processor" means an individual who performs clerical or
				support duties as an employee (not as an independent contractor) of a person
				licensed or exempt from licensing and at the direction of and subject to the
				supervision and instruction of an individual licensed, or exempt from
				licensing, under this chapter. The job responsibilities may include the
				receipt, collection and distribution of information common for the processing
				of a loan. The loan processor may also communicate with a borrower to obtain
				the information necessary for the processing of a loan, provided that such
				communication does not include offering or negotiating loan rates or terms, or
				counseling borrowers about loan rates or terms. A loan processor engaged as an
				independent contractor by a licensee must hold a mortgage loan originator
				license. See WAC 208-660-300(13).
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 208-660-107 - How does the department interpret the definition of "licensee" in RCW 19146010(10)?

Current through Register Vol. 24-14, July 15, 2024
"Licensee" means:
* A mortgage broker licensed by the director;
* The principal(s) or designated broker of a mortgage
				broker;
* A loan originator licensed by the director;
* Any person subject to licensing under RCW  19.146.-200;
				or
* Any person acting as a mortgage broker or loan originator
				subject to any provisions of the act.
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 208-660-109 - How does the department interpret the definition of "mortgage broker" in RCW 19146010(14)?

Current through Register Vol. 24-14, July 15, 2024
"Mortgage broker" means any person who for compensation or
				gain, or in the expectation of compensation or gain (a) assists a person in
				obtaining or applying to obtain a residential mortgage loan or (b) holds
				himself or herself out as being able to assist a person in obtaining or
				applying to obtain a residential mortgage loan. A mortgage broker either
				prepares a residential mortgage loan for funding by another entity or table
				funds the residential mortgage loan. See the definition of "table funding."
				(These are the two activities allowed under the MBPA.)
For purposes of this definition, a person "assists a person in
				obtaining or applying to obtain a residential mortgage loan" by, among other
				things, counseling on loan terms (rates, fees, other costs), preparing loan
				packages, or collecting enough information on behalf of the consumer to
				anticipate a credit decision under Regulation X, 12 C.F.R. Part
				1024.2(b).
For purposes of this definition, a person "holds himself or
				herself out" by advertising or otherwise informing the public that they engage
				in any of the activities of a mortgage broker or loan originator, including the
				use of business cards, stationery, brochures, rate sheets, or other promotional
				items.
"Mortgage broker" also includes any 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
				or holds himself or herself out as being able to perform residential mortgage
				loan modification services.
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 208-660-143 - Computer loan information (CLI) providers

Current through Register Vol. 24-14, July 15, 2024
(1)
When is a CLI provider exempt from the licensing requirements of the
			 act?
A CLI provider is exempt from the licensing requirements of the
			 act:
(a) When the CLI provider meets the
			 general statutory requirements under RCW     19.146.020(1)(a), (c), (d), or (f);
			 or
(b) When a real estate broker or
			 salesperson licensed in Washington, acting as a CLI provider and a real estate
			 agent, obtains financing for a real estate transaction involving a bona fide
			 sale of real estate and does not receive either:
(i) A separate fee for the CLI service;
			 or
(ii) A sales commission greater
			 than that which would be otherwise customary in connection with the sales
			 transaction; or
(c) When
			 a person, acting as a CLI provider:
(i)
			 Provides only information regarding rates, terms, and lenders;
(ii) Complies with all requirements of
			 subsection (4) of this section;
(iii) Does not represent or imply to a
			 borrower that they are able to obtain a residential mortgage loan from a
			 mortgage broker or lender;
(iv)
			 Does not accept a loan application, assist in the completion of a loan
			 application, or submit a loan application to a mortgage broker or lender on
			 behalf of a borrower;
(v) Does not
			 accept any deposit for third-party provider services or any loan fees from a
			 borrower in connection with a loan, regardless of when the fees are
			 paid;
(vi) Does not negotiate
			 interest rates or terms of a loan with a mortgage broker or lender on behalf of
			 a borrower; and
(vii) Does not
			 provide to the borrower a good faith estimate or loan estimate or other
			 disclosure(s) required of mortgage brokers or lender(s) by state or federal
			 law.
(d) If the CLI
			 provider is not exempt under (a), (b), or (c) of this subsection, the CLI
			 provider is not required to have a mortgage broker license if the CLI provider
			 does not receive any fee or other compensation or gain, directly or indirectly,
			 for performing or facilitating the CLI service.
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 208-660-163 - Mortgage brokers-Licensing

Current through Register Vol. 24-14, July 15, 2024
(1)
How do
				I apply for a mortgage broker license?
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.
(a)
Appoint a designated broker.
You must appoint a designated broker who meets the requirements of WAC
				208-660-250.
(b)
Submit an
				application.
You must complete an online application through the
				NMLS.
(c)
Pay the application
				and license fees.
You will have to pay application fees to cover the
				costs of processing the application. You must also pay a separate annual
				license fee. See WAC 208-660-550 Department fees and costs.
(d)
Prove your identity.
You
				must provide information about the identity of owners, principals, officers,
				and the designated broker, including fingerprints.
(e)
Provide a surety bond.
Mortgage brokers must have a surety bond based upon the annual loan origination
				volume of the mortgage broker. See WAC 208-660-175(1)(e).
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 208-660-175 - Mortgage brokers-Surety bond

Current through Register Vol. 24-14, July 15, 2024
(1)
What
				are the surety bond requirements for licensed mortgage brokers?
(a) Mortgage brokers must at all times have a
				valid surety bond on file with the director. The surety bond must be provided
				on a form prescribed by the department.
(b) The surety bond amount must be based upon
				the annual loan origination volume of the licensee in the state of
				Washington.
(c) When the mortgage
				broker initially applies for a license, the dollar amount of the surety bond
				must be a minimum of twenty thousand dollars. Thereafter, by March 31st of each
				year, you must determine your required bond amount based on loan origination
				volume and provide DFI with proof of having an adequate bond.
(d) The surety bond must list the mortgage
				broker's corporate name and NMLS unique identifier.
(e) The following chart shows the surety bond
				amount required for the annual loan origination volume of the licensee in the
				state of Washington:
Loan Volume in Millions
Bond Amount
$40+
$60,000
$20 to $40
$40,000
$0 to $20
$20,000
(f)
				If you only offer residential mortgage loan modification services, your bond
				amount is twenty thousand dollars, initially and thereafter.
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 208-660-176 - Mortgage brokers - Recovery fund in lieu of surety bond

Current through Register Vol. 24-14, July 15, 2024
(1)
What if the surety bond required in
						WAC 208-660-175 is not reasonably
						available in the insurance market?
If the director determines that the
						bond required is not reasonably available due to the insurance market or other
						product availability issue, the director must waive the requirements for the
						bond.
(2)
If a recovery fund
						is created, how will it be funded?
All licensees will pay a fee at
						application and renewal, in addition to all license application fees, through
						the NMLS, to fund the recovery fund.
(3)
How much will the recovery fund
						fees be?
(a) Two hundred fifty dollars
						for the main office location;
(b)
						One hundred fifty dollars for each branch office; and
(c) One hundred dollars for each mortgage
						loan originator.
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 208-660-195 - Mortgage brokers-Branch offices

Current through Register Vol. 24-14, July 15, 2024
(1)
May I open branch offices under my mortgage broker license?
Yes. A
				licensed mortgage broker may submit license application(s) to the department
				through the NMLS to establish branch office(s) under the existing mortgage
				broker license. Each branch office must be licensed and must pay an annual
				license fee. See WAC 208-660-550, Department fees and costs.
(2)
If my branch offices are under
				separate ownership, does that limit my liability for their activities?
No. Licensed mortgage brokers are responsible for the activity and violations
				at their branch offices regardless of the structure or label given the branch
				offices. Licensure of a branch office creates a direct line of responsibility
				from the main office to the branch.
(3)
If my branch offices are under
				separate ownership, what level of supervision must I maintain?
Because
				branch offices, regardless of their business structure, are not independent
				from your license and surety bond, you are responsible for the conduct of
				anyone conducting business under your license. You must have a written
				supervisory plan. The details of the plan, and how you implement the plan for
				your branch offices, must take into account the number of branch offices, their
				location, and the number of individuals working at the branch offices. You must
				maintain your written supervisory plan as part of your business books and
				records.
(4)
How do I apply
				for a mortgage broker branch office license?
As the licensed mortgage
				broker, you must apply for a branch office license through the NMLS and receive
				approval from the department before operating from any location other than your
				licensed location. You must be in good standing. You will have to pay
				application and annual assessment fees for the branch office(s). See WAC
				208-660-550, Department fees and costs.
(5)
What does the department consider
				when reviewing an application for a branch office license?
The
				department considers:
(a) Whether the mortgage
				broker is in good standing. See WAC 208-660-007.
(b) Whether the physical address listed in
				the application can be verified as a branch office location.
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 › DESIGNATED BROKERS › Section 208-660-250 - Designated brokers - General

Current through Register Vol. 24-14, July 15, 2024
(1)
How do I become a designated broker?
(a) Be eighteen years or older.
(b) Have a high school diploma, an equivalent
						to a high school diploma, or two years experience in the industry in addition
						to the experience required in (e) of this subsection. The experience must meet
						the criteria in (e) of this subsection.
(c) You must pass the Washington designated
						broker test. See WAC
						208-660-260, Designated
						brokersTesting. If you will originate loans, you must also take and pass the
						loan originator test and apply for and receive a loan originator
						license.
(d) You must be appointed
						to the designated broker position by the licensed mortgage broker through an
						application and approval process with the department and the NMLS.
(e) You must have a minimum of two years
						experience lending or originating residential mortgage loans.
(i) The work experience must be in one or
						more of the following, within the last five years:
(A) As a mortgage broker or designated broker
						of a mortgage broker for a minimum of two years; or
(B) As a mortgage banker, responsible
						individual, or manager of a mortgage banking business; or
(C) As a loan originator with responsibility
						primarily for originating loans secured by a lien on residential real estate;
						or
(D) As a branch manager of a
						lender with responsibility primarily for loans secured by a lien on residential
						real estate; or
(E) As a manager or
						supervisor of mortgage loan originators; or
(F) As a mortgage processor, underwriter, or
						quality control professional; or
(G) As a regulator, examiner, investigator,
						compliance expert, or auditor, whose primary function is the review of mortgage
						companies and their compliance processes, and the department determines your
						background is sufficient.
(ii) The work experience must be evidenced by
						a detailed work history and:
(A) W-2 Federal
						Income Tax Reporting Forms in the designated broker appointee's name;
						or
(B) 1099 Federal Income Tax
						Reporting Forms in the designated broker appointee's name; or
(C) Corporate tax returns signed by the
						designated broker appointee or corporate officer for a licensed or exempt
						residential mortgage company; or
(f) In addition to supplying the application
						information, both you and the licensed mortgage broker must be in good standing
						with the department; or
(g)
						Demonstrate financial responsibility, character and general fitness.
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 › DESIGNATED BROKERS › Section 208-660-260 - Designated brokers - Testing

Current through Register Vol. 24-14, July 15, 2024
(1)
Must I pass a test prior to becoming a designated broker?
Yes. You
						must take and pass the Washington designated broker test. See subsection (3) of
						this section if you are going to originate loans. See WAC
						208-660-250(1) if you have never been a designated broker.
(2)
If I am currently a designated
						broker, will I have to take the test again?
You will only have to retake
						the test if you stop working as a designated broker for five years or
						longer.
(3)
If I am currently
						a designated broker that originates loans, will I have to take the loan
						originator test and obtain a loan originator license?
Yes. You must take
						and pass the national and state NMLS tests and obtain the necessary
						prelicensing education prior to acting as a loan originator.
(4)
Where can I get information about
						the designated broker test?
Go to the department's web site for
						information about the designated broker test:
http://www.dfi.wa.gov/cs/mb_testing.htm
.
(5)
What topics may be covered in the
						designated broker test?
See WAC
						208-660-600(3).
(6)
How soon after failing the
						designated broker test may I take it again?
After failing the test three
						consecutive times you must wait at least fourteen days before taking the test
						again.
Statutory Authority: Chapter 43.320 RCW and
								RCW
								19.146.223. 12-18-048, §
											208-660-260, filed 8/29/12,
								effective 11/1/12. Statutory Authority:
								RCW
								   43.320.040,
								19.146.223, and
								2009 c
								528. 09-24-091, §
											208-660-260, filed 12/1/09,
								effective 1/1/10. Statutory Authority:
								RCW
								   43.320.040,
								19.144.070, 2008 c 109. 09-01-156,
								§
											208-660-260, filed 12/23/08,
								effective 1/23/09. Statutory Authority:
								RCW
								   43.320.040,
								19.146.223. 08-05-126, §
											208-660-260, filed 2/20/08,
								effective 3/22/08. Statutory Authority:
								RCW
								   43.320.040,
								19.146.223, 2006 c 19. 06-23-137,
								§
											208-660-260, filed 11/21/06,
								effective 1/1/07.
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 › LOAN ORIGINATORS › Section 208-660-350 - Loan originators-Licensing

Current through Register Vol. 24-14, July 15, 2024
(1)
How do
				I apply for a loan originator license? 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. See also WAC
				208-660-352 Temporary authority to originate loans. You also must:
(a)
Be eighteen years or
				older.
(b)
Prove your
				identity.
You must provide information to prove your identity.
(c)
Complete prelicensing education.
You must complete prelicensing education before submitting the license
				application. See WAC 208-660-355.
(d)
Pass a licensing test.
You
				must take and pass the NMLS test before submitting the license application. See
				WAC 208-660-360 Loan originators-Testing.
(e)
Pay the application fee.
You
				must pay an application fee for your application, as well as an administrative
				fee to the NMLS. See WAC 208-660-550 Department fees and costs.
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 › LOAN ORIGINATORS › Section 208-660-352 - 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 208-660-355.
(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 208-660 - Mortgage brokers and loan originators-Licensing › LOAN ORIGINATORS › Section 208-660-355 - Loan originators - Prelicensing education

Current through Register Vol. 24-14, July 15, 2024
(1)
(a)
Must I obtain prelicensing education before I will be given a
						license?
Yes. You must complete at least twenty-two hours of
						prelicensing education from an NMLS approved provider. The prelicensing
						education must include at least three hours of federal law and regulations;
						three hours of ethics, which must include instruction on fraud, consumer
						protection, and fair lending issues; two hours related to lending standards for
						the nontraditional mortgage product marketplace; and at least four hours of
						training specifically related to Washington law.
(b) You will receive credit for having
						completed the SAFE required prelicensing education for every state once you
						have successfully completed the SAFE required prelicensing education
						requirements approved by the NMLS for any state.
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 › LOAN ORIGINATORS › Section 208-660-360 - Loan originators - Testing

Current through Register Vol. 24-14, July 15, 2024
(1)
Must I pass a test prior to
						becoming a loan originator?
Yes. 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 contracts for its test provider. You
						will find information on the test provider on the NMLS web site at
www.stateregulatoryregistry.org
.
(3)
How much does the loan originator
						test cost?
Testing costs are set by contract between the test provider
						and the NMLS and may be modified from time to time. The department will publish
						the current testing fee on its web site or you may find it on the NMLS web site
						at
www.stateregulatoryregistry.org
.
(4)
How do I register to take the loan
						originator test?
The department will provide a link to the NMLS test
						provider on its 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?
You must
						retake the loan originator test if you have not been a loan originator within
						the past five years.
(7)
How
						soon after failing the loan originator test may I take it again?
You may
						retake a test three consecutive times with each consecutive taking occurring at
						least thirty days after the preceding test. After failing three consecutive
						tests, you must wait at least six months before taking the test
						again.
Statutory Authority: Chapter 43.320 RCW and
								RCW
								19.146.223. 13-06-022, §
											208-660-360, filed 2/27/13,
								effective 4/1/13; 12-18-048, §
											208-660-360, filed 8/29/12,
								effective 11/1/12. Statutory Authority:
								RCW
								   43.320.040,
								19.146.223, and
								2009 c
								528. 09-24-091, §
											208-660-360, filed 12/1/09,
								effective 1/1/10. Statutory Authority:
								RCW
								   43.320.040,
								19.144.070, 2008 c 109. 09-01-156,
								§
											208-660-360, filed 12/23/08,
								effective 1/23/09. Statutory Authority:
								RCW
								   43.320.040,
								19.146.223, 2006 c 19. 06-23-137,
								§
											208-660-360, filed 11/21/06,
								effective 1/1/07.
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 › LOAN ORIGINATORS › Section 208-660-370 - Loan originators - Continuing education

Current through Register Vol. 24-14, July 15, 2024
(1)
How many hours of continuing
						education must I have each year to renew my license?
(a) You must have at least eight hours to
						satisfy the federal requirement. The eight hours of education must include
						three hours of federal law and regulations; two hours of ethics on fraud,
						consumer protection, and fair lending issues; and two hours on lending
						standards for the nontraditional mortgage product marketplace.
(b) You must have at least one additional
						hour of continuing education to satisfy the Washington requirement.
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 › RECORDS AND RESPONSIBILITIES › Section 208-660-400 - Reporting requirements and notices to the department

Current through Register Vol. 24-14, July 15, 2024
(1)
What are my NMLS mortgage call
				report filing requirements?
You are required to file accurate and
				complete mortgage call reports, including residential mortgage loan activity
				reports and financial condition reports, through the NMLS on the dates and in a
				form prescribed by the director or NMLS.
(2)
As a licensed mortgage broker what
				are my reporting responsibilities when something of significance happens to my
				business?
(a)
Notification
				required.
You must notify the director through amendment to the NMLS and
				upload supporting documents, if applicable, to a change of:
(i) Principal place of business or any branch
				offices;
(ii) Sponsorship status of
				a mortgage loan originator;
(iii)
				Answers to the NMLS generated disclosure questions or if your answer does not
				change but another event has occurred that requires disclosure and uploading of
				explanatory documentation.
(iv) Any
				change in the information supplied to the director in your original
				application.
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 › RECORDS AND RESPONSIBILITIES › Section 208-660-420 - Out-of-state mortgage brokers and loan originators

Current through Register Vol. 24-14, July 15, 2024
(1)
May I be a licensed mortgage broker
				in Washington without a physical office in Washington?
Yes. You are not
				required by the act to have a physical location in Washington.
(2)
May I be a licensed mortgage broker
				in Washington and have branch offices both in Washington and outside of
				Washington?
Yes. However, each of your branch offices that offer
				Washington residential mortgage loans must hold a Washington license, even if
				the location is outside Washington.
(3)
May my mortgage broker business be
				conducted entirely on the internet?
Yes. But you must have a license for
				all locations including those that offer loans by mail or internet.
(4)
May I work as a loan originator in
				Washington if I do not have a physical location in Washington?
Yes. You
				may originate Washington loans from any licensed location or your residence
				pursuant to WAC 208-660-505, inside or outside of Washington, as long as the
				company that sponsors you is licensed to do business in Washington.
(5)
May I work as a licensed loan
				originator for a licensed mortgage broker that is out of the state?
Yes,
				as long as you work from a licensed location or your residence pursuant to WAC
				208-660-505.
(6)
If my
				mortgage broker business is not located in Washington, where must I keep my
				records?
If your business is located outside of Washington, you may
				either maintain the books and records at a location in Washington, or pay the
				department's travel expenses to the out-of-state location to examine the books
				and records. Travel expenses may include, but are not limited to,
				transportation, meals, and lodging.
(7)
What additional requirements must I
				comply with if my business does not have a physical location in
				Washington?
You must continuously maintain a registered agent in
				Washington and provide the department, through the NMLS, with the registered
				agent's name, physical and mailing address, and written consent to be the
				registered agent.
(8)
How do
				I change the information about my registered agent?
You must update the
				information in the NMLS within 10 business days from the change.
(9)
If I am a registered agent under
				the act, what must I do to resign as registered agent?
(a) Provide the department with a statement
				of resignation at least 31 days prior to the intended effective date of your
				resignation.
(b) Provide a copy of
				the statement of resignation to the licensed mortgage broker.
(c) The department will terminate your
				appointment on the 31st day after the date on which the statement of
				resignation was delivered.
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 › RECORDS AND RESPONSIBILITIES › Section 208-660-430 - Disclosure requirements

Current through Register Vol. 24-14, July 15, 2024
(1)
What
				disclosures must I make to borrowers and when?
(a) Within three business days of receiving a
				borrower's loan application, or receiving money from a borrower for third-party
				provider services, you, as a mortgage broker or loan originator on behalf of a
				mortgage broker, must make all disclosures required by RCW     19.146.030(1), (2),
				(3), and 19.144.020. The one page disclosure summary required by RCW     19.144.020 must be dated when provided to the borrower. The disclosures must be in a form
				acceptable to the director.
(b) If
				a lender is providing disclosures to the borrower, you must maintain copies of
				those disclosures and a copy of your agreement with the lender about the
				provision of disclosures; failure to do so would result in a
				violation.
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 › RECORDS AND RESPONSIBILITIES › Section 208-660-440 - Advertising

Current through Register Vol. 24-14, July 15, 2024
(1)
Am I responsible for ensuring that
				my advertising material is accurate, reliable, and in compliance with the
				act?
Yes. Each mortgage broker is responsible for ensuring the accuracy
				and reliability of the advertising material.
(2)
A licensee is prohibited from
				advertising with envelopes, stationery, or images in an electronic format that
				are designed to resemble a government agency mailing or that suggest an
				affiliation that does not exist. What are some examples of emblems or
				government-like names, language, or nonexistent affiliations that will violate
				the state and federal advertising laws?
Some examples include, but are
				not limited to:
(a) 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.
(b) Images, including those in electronic
				format, designed to resemble official government communications, such as IRS or
				U.S. Treasury, or other government agencies.
(c) Warnings or notices citing government
				codes or form numbers not required by the U.S. Postmaster to be shown on the
				mailing.
(d) The use of the term
				"official business," or similar language implying official or government
				business, without also including the name of the sender.
(e) Any suggestion or representation that the
				solicitor is affiliated with any agency, bank, 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 208-660 - Mortgage brokers and loan originators-Licensing › RECORDS AND RESPONSIBILITIES › Section 208-660-445 - 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.
Statutory Authority:
								RCW
								   43.320.040,
								19.146.223, and   2010 c  35.
								10-20-125, §
											208-660-445, 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 208-660 - Mortgage brokers and loan originators-Licensing › RECORDS AND RESPONSIBILITIES › Section 208-660-446 - 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 examples of ways to
				display your license number. See WAC 208-660-350(25).
(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 statutes 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,
								19.146.223, and   2010 c  35.
								10-20-125, §
											208-660-446, 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 208-660 - Mortgage brokers and loan originators-Licensing › RECORDS AND RESPONSIBILITIES › Section 208-660-450 - Recordkeeping requirements

Current through Register Vol. 24-14, July 15, 2024
(1)
What business books and records must I keep to comply with the
						act?
The following books and records for your business must be available
						to the department.
(a)
Mortgage
						transaction documents.
(i) All forms of
						loan applications, written or electronic (the Fannie Mae 1003 is an
						example);
(ii) The initial rate
						sheet or other supporting rate information. The last rate sheet, or other
						supporting rate information, if there was a change in rates, terms, or
						conditions prior to settlement;
(iii) Correspondence with third parties
						requesting documents necessary to the transaction (and copies of the documents
						received as a result of that correspondence) including, but not limited to,
						credit, appraisal, title, verifications of employment and deposits, automated
						underwriting results, and any other notes or documents used to collect borrower
						and loan information to originate the loan;
(iv) All written disclosures required by the
						act and federal laws and regulations, including those provided to consumers by
						the lender. Some examples of federal law disclosures are: The good faith
						estimate or loan estimate, Equal Credit Opportunity Act disclosures, affiliated
						business arrangement disclosures, and RESPA servicing disclosure
						statement;
(v) Documents and
						records of compensation paid to employees and independent
						contractors;
(vi) An accounting of
						all funds received in connection with loans, including a trust account
						statement with supporting data;
(vii) Rate lock agreements and the supporting
						rate sheets or other rate supporting document;
(viii) Settlement statements initial and
						final, if applicable);
(ix) Broker
						loan document requests (may also be known as loan document request or demand
						statements) that include any prepayment penalties, terms, fees, rates, credit
						or charge for the interest rate, loan type and terms;
(x) Records of any fees refunded to
						applicants for loans that did not close;
(xi) All file correspondence and
						logs;
(xii) All mortgage broker
						contracts with lenders and all other correspondence with the lenders;
						and
(xiii) The clear written
						explanation required under WAC
						208-660-430(11)(b).
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 › RECORDS AND RESPONSIBILITIES › Section 208-660-460 - 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 208-660 - Mortgage brokers and loan originators-Licensing › RECORDS AND RESPONSIBILITIES › Section 208-660-470 - Consumer financial information privacy under the Gramm-Leach-Bliley Act (GLBA) and Regulation P

Current through Register Vol. 24-14, July 15, 2024
Licensees must comply with GLBA, as amended, and Regulation
							P.
(1) 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 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 208-660 - Mortgage brokers and loan originators-Licensing › RECORDS AND RESPONSIBILITIES › Section 208-660-480 - 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 by the attorney general's office.
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 › RECORDS AND RESPONSIBILITIES › Section 208-660-490 - Business resumption plan

Current through Register Vol. 24-14, July 15, 2024
Licensees must have a written plan that details the
							company's response and recovery to any event that results in damage to or
							destruction of books and records. The plan must be maintained as part of the
							licensee's books and records.
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 › DIRECTOR AND DEPARTMENT POWERS › Section 208-660-505 - 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     19.146.265 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 208-660-460, which must
				include safeguards that protect customer 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 208-660-460 and
				208-660-470 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 208-660 - Mortgage brokers and loan originators-Licensing › DIRECTOR AND DEPARTMENT POWERS › Section 208-660-510 - Director and department powers - Examination authority

Current through Register Vol. 24-14, July 15, 2024
(1)
Why is the department authorized to
						examine my business?
The department is authorized to examine your
						business to determine your compliance with the act.
(2)
When may the department examine my
						business?
The department may examine your business at any
						time.
(3)
Will the department
						give me advance notice of an examination?
(a) The department will generally give you
						advance notice of at least thirty days of a routine examination to allow you to
						compile the requested documents and prepare for the examiner's arrival.
						However, you and the department may agree on an earlier date for the
						examination. Extensions of time beyond that are at the director's
						discretion.
(b) The department will
						not give you advance notice of "for cause" examinations. "For cause" means the
						department may have reason to believe you have violated the act.
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 › DIRECTOR AND DEPARTMENT POWERS › Section 208-660-530 - Director and department powers - Enforcement authority

Current through Register Vol. 24-14, July 15, 2024
(1)
What is a directive?
A
						directive is a formal request for information from the director. A directive
						may request the recipient to appear in person to testify or present specific
						documents or items. A directive may be entitled "directive" or
						"subpoena."
(2)
What is an
						administrative enforcement action?
An administrative enforcement action
						is a formal action, generally initiated by a statement of charges filed by the
						department against persons who allegedly violated the act. Enforcement actions
						seek various sanctions, including, but not limited to, license revocation or
						suspension, business practice prohibition, or fines; and may include ordering
						restitution for borrowers, recovery of the department's investigation costs, or
						all of the above.
(3)
What
						other types of enforcement action may the department pursue against me or my
						license?
The department may pursue criminal or civil referrals to the
						attorney general, prosecuting attorneys, or federal authorities, and may
						initiate civil actions in superior court.
(4)
What does it mean to be found in
						violation of the act and rules?
For the purposes of evaluating the
						licensing qualifications of an applicant, any of its principals, or the
						designated broker, "found in violation of the act and rules" means at least one
						of the following orders has been issued:
(a) A
						superior court order stating the applicant, any of its principals, or the
						designated broker violated any of the provisions of the act or rules;
						or
(b) A final administrative order
						after the completion of an administrative hearing and the filing of an initial
						decision of an administrative law judge stating the applicant, any of its
						principals, or the designated broker violated any of the provisions of the act
						or rules; or
(c) An administrative
						order stating the applicant, any of its principals, or the designated broker
						violated any of the provisions of the act or rules.
The order containing the finding described above must not
							have been entered within five years of the filing of the present application.
							However, if the violation resulted in a conviction of a gross misdemeanor
							involving dishonesty or financial misconduct, or a felony, the finding must not
							have been entered within seven years of the filing of the present
							application.