Washington Administrative Code

RCW 33.32.030 provides for regulatory authority by the director over the activities of foreign associations within the state of Washington, and requires that such associations conduct their business in accordance with the appropriate statutes and under the requirements set forth …

An application shall include at least the following information:(1) Name, address, and telephone number of the applicant.(2) Name, address, and telephone number of the person to be contacted concerning the application.(3) A summary of the applicant's history, which should include…

The information required by WAC 208-598-020 must demonstrate to the satisfaction of the director:(1) That the applicant, the directors of the applicant, and the chief officers of the applicant are each of good character and sound financial standing.(2) That the financial history …

[Statutory Authority: RCW 43.320.040, chapter 19.144 RCW. WSR 08-22-083, § 208-600-100, filed 11/4/08, effective 12/5/08.]

(1) Purpose and scope of rule. This rule is the result of legislation recommended by the Washington state task force on homeowner security. The legislation was enacted by the Washington state legislature, at chapter 108, Laws of 2008, and codified in chapter 19.144 RCW. The state…

[Statutory Authority: RCW 43.320.040, chapter 19.144 RCW. WSR 08-22-083, § 208-600-300, filed 11/4/08, effective 12/5/08.]

[Statutory Authority: RCW 43.320.040, chapter 19.144 RCW. WSR 08-22-083, § 208-600-400, filed 11/4/08, effective 12/5/08.]

[Statutory Authority: RCW 43.320.040, chapter 19.144 RCW. WSR 08-22-083, § 208-600-500, filed 11/4/08, effective 12/5/08.]

[Statutory Authority: RCW 43.320.040, chapter 19.144 RCW. WSR 08-22-083, § 208-600-600, filed 11/4/08, effective 12/5/08.]

[Statutory Authority: RCW 43.320.040, chapter 19.144 RCW. WSR 08-22-083, § 208-600-700, filed 11/4/08, effective 12/5/08.]

[Statutory Authority: RCW 43.320.040, chapter 19.144 RCW. WSR 08-22-083, § 208-600-800, filed 11/4/08, effective 12/5/08.]

[Statutory Authority: RCW 43.320.040, chapter 19.144 RCW. WSR 08-22-083, § 208-600-900, filed 11/4/08, effective 12/5/08.]

The definitions set forth in this section apply throughout this chapter unless the context clearly requires a different meaning.(1) "Act" means the Consumer Loan Act, chapter 31.04 RCW.(2) "Advertise, advertising, and advertising material" means any form of sales or promotional m…

(1) "Borrower" means an individual who consults with or retains a licensee or person subject to this chapter in an effort to obtain or seek information about obtaining a loan for personal, family, or household use, or a residential mortgage loan modification, regardless of whethe…

(1) See RCW 31.04.025 (2)(a), (b), (d), (g) through (i), and (k) through (m).(2) Under RCW 31.04.025 (2)(c), entities conducting transactions under chapter 63.14 RCW (Retail installment sales of goods and services); however, the entity is not exempt if the transactions are an ext…

The following are exempt from licensing as a mortgage loan originator:(1) Registered mortgage loan originators or any individual required to be registered while employed by a covered financial institution as defined in regulation G, 12 C.F.R. Sec. 1007.102;(2) Any individual who …

(1) Yes. If you do not qualify for an exemption under RCW 31.04.025 or 31.04.420, you must hold a license to:(a) Be located in Washington and lend money, extend credit, service or modify residential mortgage loans, or service student education loans;(b) Be located outside Washing…

(1) Persons servicing loans they originated.(2) Persons servicing loans purchased post closing.(3) Persons servicing loans owned by other persons.(4) See also WAC 208-620-011(5) and 208-620-104.[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 18-16-024, § 208-620-231, file…

Yes. Pursuant to RCW 31.04.025(3) you may be eligible to make five or fewer residential mortgage loans during a calendar year without holding a company level license. You must apply for and obtain the license waiver for each transaction. If you are eligible for and receive the li…

Yes. (1) The company must license at the company level and must employ at least one licensed mortgage loan originator. Loan processors and underwriters are subject to the individual licensing requirements of the S.A.F.E. Act, 12 C.F.R. Part 1008 (Regulation H) if not supervised b…

Yes. The rate of interest specified in the note must not exceed twenty-five percent per annum.[Statutory Authority: RCW 43.320.040, 31.04.165 and 2010 c 35. WSR 10-20-122, § 208-620-235, filed 10/5/10, effective 11/5/10. Statutory Authority: RCW 43.320.040, 31.04.165, 2009 c 120,…

(1) No. You are not required to maintain a physical presence in this state to hold a license but any location doing business under the act, wherever located, must be licensed, except those locations consistent with subsection (2) of this section. Your company's main office (headq…

(1) Keeping records out-of-state. You must keep your books and records location information updated in the NMLS and provide the director with access to the books and records.(2) Service on out-of-state licensee. An out-of-state licensee's registered agent in Washington is the lic…

Yes. You may broker residential mortgage loans under the Consumer Loan Act. Brokered loans are subject to the annual assessment. See WAC 208-620-441.[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 18-16-024, § 208-620-260, filed 7/24/18, effective 9/1/18; WSR 13-24-024, §…

Yes. Persons providing third-party loan modification services for compensation or gain must be licensed under this chapter, or under chapter 19.146 RCW. See also WAC 208-620-552 and 208-620-568.[Statutory Authority: Chapter 43.320 RCW, RCW 31.04.165. WSR 16-08-026, § 208-620-271,…

(1) 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.(2) Upon application and periodically upon license renewal, each officer, director, and owner …

The department will only process complete applications. If your application is incomplete your file will be marked "pending-deficient" in the NMLS. The department will either identify each deficiency or respond that there are multiple deficiencies and ask you to contact the depar…

You may withdraw the application through the NMLS. You will not receive a refund of the NMLS application fee but you may receive a partial refund of your licensing fee if the fee exceeds the department's actual cost to investigate the license application.[Statutory Authority: RCW…

You have the right to request an administrative hearing pursuant to the Administrative Procedure Act, chapter 34.05 RCW. To request a hearing, you must notify the department within twenty days from the date of the director's notice to you that your license application has been de…

(1) NMLS fees. You must pay the NMLS system fee when you submit your application.(2) DFI fees. You must pay $95.55 per hour for review and investigation of the following:(a) New consumer loan company license;(b) New branch office license;(c) Notice of change of control; or(d) Opi…

Yes. You must submit a branch office application through the NMLS for each branch office, residential mortgage loan servicing location, student education loan servicing location, or direct solicitation location. You may not operate from a location until a license is granted for t…

(1) Your managers, including branch managers, must license individually as mortgage loan originators if they conduct any one of the following activities:(a) Take residential mortgage loan applications, negotiate the terms or conditions of residential mortgage loans, or hold thems…

A location that is solely providing loan processing or underwriting or other back-office services on Washington loans and has only incidental contact with the borrower after an application has been taken, is not required to be licensed. Back office services do not include loan se…

(1) Surety bond amounts are based on the volume of your activity from prior years. If there is no prior year volume, the surety bond amount required at application is thirty thousand dollars. For purposes of this section, references to loan origination volume mean closed loans.(2…

(1)(a) An applicant or licensee operating as an approved servicer by one or more government sponsored or government corporation entities must maintain liquidity (to include operating reserves) and tangible net worth that meet the standards set by the entity. If approved by more t…

(1)(a) An applicant or licensee servicing residential mortgage loans not including any GSE or government corporation loans must maintain a minimum tangible net worth, based on its nationwide servicing portfolio, as follows:0-199 loans $100,000 200-299 loans $200,000 300-399 loans…

(1)(a) An applicant or licensee servicing student education loans must maintain a minimum tangible net worth of two hundred fifty thousand dollars.(b) In addition, the applicant or licensee must maintain liquidity (to include operating reserves) of .00035 times the unpaid princip…

Your bond amount may change annually depending on your volume of Washington activity. By March 1st of each year, you must determine your required bond amount and provide DFI with proof of having an adequate bond.[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 18-24-013, §…

You must report your volume of activity as directed and on the form prescribed by the director.[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 18-24-013, § 208-620-328, filed 11/27/18, effective 1/1/19. Statutory Authority: Chapter 43.320 RCW, RCW 31.04.165. WSR 16-08-026…

Yes. The surety bond must cover both the licensee and all employees and independent contractors working for the licensee.[Statutory Authority: RCW 43.320.040, 19.144.070, 2008 c 78. WSR 09-01-159, § 208-620-330, filed 12/23/08, effective 1/23/09. Statutory Authority: RCW 31.04.16…

With the director's approval, you may use a bond substitute, as defined in WAC 208-620-010, that meets the following requirements:(1) Your company must be a Washington business corporation.(2) Your company must maintain unimpaired capital in an amount so that the aggregate sum of…

Yes. They must each obtain individual bonds based on their mortgage loan origination volume. See WAC 208-620-710 (3)(i).[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 13-24-024, § 208-620-341, filed 11/22/13, effective 1/1/14; WSR 12-18-047, § 208-620-341, filed 8/29/12,…

(1) Semiannual financial statements required. A licensee that maintains a bond substitute must submit semiannually to the director year-to-date financial statements prepared in accordance with generally accepted accounting principles, including at a minimum a statement of assets …

A company that does not maintain a sufficient bond substitute must notify the director within ten days of the decrease in unimpaired capital. The department will then direct you to obtain and file a surety bond in the amount required by WAC 208-620-320. You must comply within twe…

The director may deny or condition approval of a license application if you or any principal, officer, or board director of the applicant:(1) Fails to pay a fee due the department or the NMLS;(2) Fails to demonstrate financial responsibility, experience, character, and general fi…

No. (1) Pursuant to RCW 31.04.093(6), the director may prohibit any officer, principal, or employee from participating in the affairs of any licensee if that officer, principal, or employee has been convicted of or pled guilty or nolo contendere to:(a) A gross misdemeanor involvi…

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.[Statutory Authority: RCW 43.320.040, 31.04.165, 2009 c 120, and 2009 c 149. WSR 09-24-090, …

Loan files belong to the company. Existing loan applications must be processed by another licensed loan originator in the company. At the borrower's written request, the loan must be transferred to another licensed entity within five days of the borrower's request. You may pay th…

You must file a relationship termination through the NMLS within ten days of firing someone or the person quitting.[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 13-24-024, § 208-620-374, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040, 31.04.165 an…

You are responsible for ensuring that your employees and mortgage loan originators have a sufficient understanding of the act and the rules.[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 12-18-047, § 208-620-378, filed 8/29/12, effective 11/1/12.]