Washington Administrative Code

(1) You may conduct your business in a licensed location in which other persons are engaged in business.(2) If you originate residential mortgage loans, you must comply with RESPA, 12 C.F.R. Sec. 1024.14, including the required disclosures and prohibitions on referral fees if:(a)…

(1) You may only transact business using the name on the license or as further described in this section.(2) You may apply to the department to add a trade or doing business as (DBA) name to your main office license but you may not use the DBA alone to transact business. DBA name…

No. A license is given to a specific entity with specific individuals at a specific location. If twenty percent or more of the business is transferred or sold to another person, the licensee and the proposed new licensee(s) must apply to the department for a license. See also WAC…

Each year you are required to file two annual reports on forms provided by the department. You must also pay a fee (assessment) based on your activities during the reporting year. The reports and the assessment fee must be provided to the department on March 1st of each year or w…

You are required to file accurate and complete call reports on the dates and in a form prescribed by the NMLS (see RCW 31.04.277).[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 18-24-013, § 208-620-431, filed 11/27/18, effective 1/1/19; WSR 13-24-024, § 208-620-431, file…

(1) Calculation of the annual assessment for loans made, brokered or purchased. The annual assessment is based on the "adjusted total loan value" as defined in subsection (2) of this section. The amount of the annual assessment is determined by multiplying the adjusted total loan…

(1)(a) Calculation of the annual assessment for loans made, brokered or purchased. The annual assessment is based on the "adjusted total loan value" as defined in subsection (2) of this section. The amount of the annual assessment is determined by multiplying the adjusted total l…

Pursuant to RCW 31.04.400, your annual assessment is an amount sufficient to cover the costs of the department's administration of the program, and to fund the student achievement council's student loan advocate. For purposes of this section, "portfolio" means all student educati…

(1) If you cease operation during the year, you must file the annual reports and pay the annual assessment required in WAC 208-620-430 within thirty days of closure.(2) Failure to file within thirty days of closure will trigger the bond claim process as described in WAC 208-620-4…

(1) Chapter 7 bankruptcy. A licensee that files for chapter 7 bankruptcy must notify the director within ten days, surrender its license(s) and deliver the consolidated annual report and worksheet for the period in business that year within sixty days of filing bankruptcy.(2) Cha…

(1) Prior notification required. You must amend your NMLS record at least ten days prior to a change of your:(a) Principal place of business or any of branch offices;(b) Name or legal status (e.g., from sole proprietor to corporation, etc.);(c) Legal or trade name;(d) Ownership c…

If you cease doing business in Washington you must do the following:(1) Submit a surrender request through the NMLS within ten days of closing the company or surrendering the license; and(2) File the final closure form, annual reports, worksheet, and submit any fees owed as requi…

If you close a branch office, you must submit a surrender request through the NMLS at least ten days prior to the branch closing.[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 13-24-024, § 208-620-500, filed 11/22/13, effective 1/1/14. Statutory Authority: RCW 43.320.040…

You must ensure you are in compliance with all federal and state laws, regulations and programs that apply to lending or brokering loans, servicing residential mortgage loans, including applicable reverse mortgage, or servicing student education loans including, but not limited t…

Yes. To ensure that underwriting standards are consistent with prudent lending practices, the underwriting standards should include, at a minimum, an analysis of the borrower's ability to repay the obligation. The analysis of a borrower's repayment capacity must include the debt …

(1) Your underwriting policy must include:• A procedure for evaluating and documenting a borrower's ability to repay.• Standards used to evaluate the borrower's ability to repay by final maturity at the fully indexed rate.• A policy that provides the assumption of a fully amortiz…

Some types of loans may not be covered by the integrated TILA-RESPA rule. Examples include: Reverse mortgages and HELOCs. Creditors originating these types of mortgages must continue to use, as applicable, the federal Good Faith Estimate, HUD-1, and Truth in Lending disclosures. …

(1) You must provide the borrower with a clear, brief one page summary to help borrowers understand their loan terms. The disclosure summary must be provided on one page separate from any other documents and must use clear, simple, plain language terms that are reasonably underst…

You must provide copies of any disclosures you provided to the borrower, following the initial disclosures, within ten business days of providing the disclosures to the borrower.[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 13-24-024, § 208-620-513, filed 11/22/13, effe…

Once your license has been issued you may:(1) Lend money with a note rate that does not exceed twenty-five percent per annum as determined by the simple interest method of calculating interest owed. This applies only to nonmortgage loans, junior lien mortgage loans, and to lender…

Unless otherwise indicated in this section, and as applicable, you must maintain the following records for a minimum of three years after making the final entry, or the period of time required by federal law, whichever is longer:(1) General records. Each licensee must maintain el…

Yes. (1) You may maintain records electronically if you also maintain the electronic display equipment and make it available upon request to the director or his or her representatives for purposes of examination or investigation.(2) The hardware or software needed to display the …

Yes. You must have written policies and procedures in place that detail your response to any event that results in damage to or destruction of your records. You must maintain the policies and procedures as part of your books and records.[Statutory Authority: Chapter 43.320 RCW, R…

Licensees must have written policies and procedures for the destruction of records, including electronic records, when the retention period ends. The destruction of records must be accomplished so that the information cannot be reconstructed or read. The destruction of consumer c…

Yes. You must separately account for all deposits and disbursements made by or for borrowers for third-party service providers. You must not use those funds for your benefit or for the benefit of any person not entitled to such benefit.[Statutory Authority: RCW 43.320.040 and 31.…

Yes. You must provide a written agreement as prescribed by the director when providing residential mortgage modification services. You must provide a copy of the signed agreement to the consumer and you must keep a copy as part of your books and records.[Statutory Authority: RCW …

In addition to RCW 31.04.027, the following constitute an "unfair or deceptive" act or practice:(1) Failure to provide the exact pay-off amount as of a certain date within seven business days after being requested in writing to do so by a borrower of record or their authorized re…

(1) In addition to being subject to RCW 31.04.027, you are prohibited from requiring or encouraging a borrower to:(a) Waive his or her legal defenses, counterclaims, and other legal rights against the servicer for future acts;(b) Waive his or her right to contest a future foreclo…

In addition to RCW 31.04.027, you are prohibited from:(1) Collecting an advance fee.(2) Charging total fees in excess of usual and customary charges, or total fees that are not reasonable in light of the service provided when providing residential mortgage loan modification servi…

(1) You are prohibited from conducting the following activities from any location outside the United States or its territories:(a) Receiving payments and maintaining the payment records;(b) Collection activities;(c) Any communications with consumers; or(d) Receipt of data from or…

(1) You are prohibited from conducting the following activities from any location outside the United States or its territories:(a) Receiving payments and maintaining the payment records;(b) Collection activities;(c) Any communications with consumers; or(d) Receipt of data from or…

(1) This subsection applies to junior lien mortgages, and first lien mortgages originated by noncreditors, as defined in the Truth in Lending Act, 15 U.S.C. 1601 and Regulation Z, 12 C.F.R. 1026.(a) Origination fees. You may charge a nonrefundable, prepaid, loan origination fee n…

(1) With residential mortgage loans you must refund any nonthird-party fees (not interest) that inured to your benefit.(2) With nonresidential mortgage loans you must refund interest and nonthird-party fees that inured to your benefit.[Statutory Authority: RCW 43.320.040 and 31.0…

This section applies to nonmortgage loans, junior lien mortgages, and first lien mortgages originated by noncreditors, as defined in the Truth in Lending Act, 15 U.S.C. 1601 and Regulation Z, 12 C.F.R. 1026.(1) Filing fees. You must not charge or collect any funds from the borrow…

Reserved.[Statutory Authority: RCW 43.320.040, 31.04.165, 2009 c 120, and 2009 c 149. WSR 09-24-090, § 208-620-561, filed 12/1/09, effective 1/1/10.]

This section applies to nonmortgage loans, junior lien mortgages, and first lien mortgages originated by noncreditors, as defined in the Truth in Lending Act, 15 U.S.C. 1601 and Regulation Z, 12 C.F.R. 1026.(1) Underwriting fee. You must not collect an underwriting fee.(2) Prepay…

(1) A broker's fee not to exceed four percent of the first twenty thousand dollars and two percent thereafter of the principal amount of the loan advanced to or for the direct benefit of the borrower, which fee may be included in the principal balance of the loan.(2) A processing…

(1) Fees for discount points;(2) An underwriting fee; or(3) Applicable fees in WAC 208-620-560(6).[Statutory Authority: RCW 43.320.040, 31.04.165, 2009 c 120, and 2009 c 149. WSR 09-24-090, § 208-620-566, filed 12/1/09, effective 1/1/10.]

(1) You may charge servicing fees authorized by the loan documents, by the act, or by the borrower. Examples include, but are not limited to, late fees as authorized by the loan documents, insufficient check fees as authorized by the loan documents or as allowed under WAC 208-620…

You must not charge total fees in excess of usual and customary charges, or total fees that are not reasonable in light of the service provided.[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 12-18-047, § 208-620-568, filed 8/29/12, effective 11/1/12. Statutory Authority:…

(1) You may charge servicing fees authorized by the loan documents, by the act, or by the borrower. Examples include, but are not limited to, late fees as authorized by the loan documents, insufficient fund fees as authorized by the loan documents or as allowed under WAC 208-620-…

The director may suspend or revoke a license if the licensee, or any principal, officer, or board director of the licensee:(1) Failing to pay. Fails to pay a fee due the department;(2) Injunction or administrative action. Is or has been subject to an injunction or a civil or admi…

(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 antic…

(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…

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.[Statutory …

(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 …

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 compon…

(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…

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…

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…