Washington Administrative Code

(1) The director may enforce all laws and rules relating to the licensing and regulation of licensees and persons subject to this chapter.(2) The director may impose fines of up to one hundred dollars per day, per violation, upon the licensee, its employees or loan originators, o…

The director has adopted: (1) The Conference of State Bank Supervisors and American Association of Residential Mortgage Regulators "Guidance on Nontraditional Mortgage Product Risks" (released November 14, 2006); and(2) The Conference of State Bank Supervisors, American Associati…

You must adopt written policies and procedures implementing the federal guidelines. The policies and procedures must be maintained as a part of your books and records and must be made available to the department upon request.[Statutory Authority: RCW 43.320.040, 19.144.070, 2008 …

The policies and procedures must include, at a minimum, underwriting standards, risk management, consumer protection, and control systems. If you only broker residential mortgage loans under your CLA license, your policies and procedures must comply with WAC 208-660-500. For purp…

The Administrative Procedure Act, chapter 34.05 RCW, governs the proceedings for license application denials, cease and desist orders, license suspension or revocation, the imposition of civil penalties or other remedies ordered by the department, and any appeals or reviews of th…

(1) What are my rights when the department begins an administrative enforcement action against me? Under the Administrative Procedure Act (APA), chapter 34.05 RCW, you have the right to request a hearing on the agency's action. Hearings are conducted as either formal adjudicative…

You must identify the business using your Washington consumer loan name as entered in the NMLS. You may also use an approved DBA name if you include the main office name as entered in the NMLS or license number. For use of URL addresses and web pages, see WAC 208-620-621 and 208-…

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. See also WAC 208-620-620 and 208-620-622.[St…

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 c…

(1) Licensees are prohibited from advertising with envelopes or stationery, or using images in an electronic format, that are designed to resemble a government mailing or other method of communication that suggest an affiliation that does not exist. Some examples of emblems or go…

You must comply with all the applicable advertising requirements under the federal statutes and regulations including, but not limited to, the Truth in Lending Act, the Real Estate Settlement Procedures Act, the Federal Trade Commission Act, the Telemarketing and Consumer Fraud a…

The director or designee may waive any or all of the fees and assessments under this chapter when he or she determines that:(1) The financial services regulation account exceeds the projected minimum fund balance level approved by the office of financial management; and(2) That t…

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 31.04.075 and subject to the following conditions:(1) The company must have written policies and procedures that…

(1) May I work from any location when I am a licensed loan originator? No. You can only work from a licensed location unless you conduct activity under the act from your residence pursuant to WAC 208-620-660.(2) May I transfer loan files to another licensed entity? No. Loan files…

(1) Must I have a license to act as a mortgage loan originator for a consumer loan company? Yes. You must not engage in the business of a mortgage loan originator without first obtaining and maintaining annually a license under this act. You must register with and maintain a vali…

(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…

Must I complete prelicensing education in order to receive a loan originator license? Yes.(1) You must complete at least twenty-two hours of prelicensing education approved by the NMLS. The prelicensing education must include:(a) Three hours of federal law and regulations;(b) Thr…

Must I pass a test prior to becoming a loan originator? Yes.(1) 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 …

(1) How many clock hours of loan originator continuing education must I have each year? You must complete a minimum of eight hours of continuing education approved by the NMLS which must include at least three hours of federal law and regulations; two hours of ethics (which must …

(1) Advance. A payment from the lender to the borrower.(2) "FHA-approved reverse mortgage" means a "home equity conversion mortgage" or other reverse mortgage product guaranteed or insured by the federal department of Housing and Urban Development.(3) "Owner-occupied residence" i…

No. WAC 208-620-800 through 208-620-850 do not apply to the HECM product or to any federally administered reverse mortgage product.[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 12-18-047, § 208-620-805, filed 8/29/12, effective 11/1/12. Statutory Authority: RCW 43.320.0…

You must meet the following requirements before offering proprietary reverse mortgage loans to Washington residents:(1) Obtain and maintain an irrevocable standby letter of credit in your favor in an amount necessary to fund all reverse mortgage loan requirements anticipated over…

(1) Loan prepayment.(a) Prepayment, in whole or in part, or the refinancing of a reverse mortgage loan, must be permitted without penalty at any time during the term of the reverse mortgage loan. For the purposes of this subsection, penalty means an amount of money charged to the…

(1) A description of all proprietary reverse mortgage products available to borrowers.(2) A copy of each proprietary loan product contract.(3) A copy of all disclosures provided to borrowers for all proprietary reverse mortgage products.(4) A copy of the projected total cost of c…

In addition to any disclosures required by federal law, you must provide, at a minimum, the following:(1) Counseling disclosure. You must provide the following plain language statement in conspicuous bold sixteen-point type or larger, prior to receiving a complete and final loan …

Examples of circumstances which might indicate that an offered reverse mortgage loan is unsuitable include reverse mortgage loans when the applicant:(1) Does not intend to reside in the property on a long-term basis.(2) Does not want nonborrower residents of the property to be di…

Contact the department for the specific process you must follow to obtain approval.[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 19-21-157, § 208-620-850, filed 10/22/19, effective 11/24/19. Statutory Authority: RCW 43.320.040, 31.04.165, 2009 c 120, and 2009 c 149. WSR…

(1) Other applicable laws, regulations, and programs. A violation of an applicable state or federal law, regulation, or program is a violation of this act. In addition to complying with all other provisions of this act, you must comply with the following:(a) Chapter 61.24 RCW and…

(1)(a) If you collect escrow amounts held for the borrower for payment of insurance, taxes, or other charges with respect to the property, you must collect and make all payments from the escrow account and, to the extent you have control, ensure that no late penalties are assesse…

(1) You must make a reasonable attempt to comply with a borrower's request for information about the residential mortgage loan account, including a request for information about loss mitigation, and to respond to any dispute initiated by the borrower about the loan account. A rea…

(1) The obligation to assign an individual servicer representative with the information and authority to answer questions and resolve disputes and to act as a single point of contact for the homeowner during loss mitigation attaches when the borrower requests loss mitigation. Thi…

(1) Before you refer a loan to foreclosure, you must document in the loan file evidence to substantiate the borrower's default and your right to foreclose. The file must also contain loan ownership information.(2) If a borrower's property goes into foreclosure and the foreclosure…

(1) Other applicable laws, regulations, and programs. A violation of an applicable state or federal law, regulation, or program is a violation of this act. In addition to complying with all other provisions of this act and rules, you must comply with the following: All applicable…

(1) You must make a reasonable attempt to comply with a borrower's request for information about the student education loan account and to respond to any dispute initiated by the borrower about the loan account. A reasonable attempt includes, but is not limited to:(a) Maintaining…

If you are acquiring, transferring, or selling servicing activities of federal student education loans in compliance with the department of education contractual requirements, you are not subject to the following requirements of this section.(1) When acquiring servicing rights fr…

The definitions in RCW 31.45.010 and this section apply throughout this chapter unless the context clearly requires otherwise."ACH" means automated clearing house, an electronic network for financial transactions that processes credit and debit transactions."Act" means chapter 31…

(1) In order to engage in the business of check cashing and selling, a business must apply for and obtain from the department a check cashing or selling license.(2) In order to make payday loans (small loans), a business must first obtain a license as a check casher or seller and…

Each applicant for a check casher license, or check seller license, or a small loan endorsement to a check casher's or seller's license must apply to the director by filing the following:(1) An application in a form prescribed by the director including at least the following info…

(1) Persons providing small loan agent services must license with the department. To license you must provide the following information:(a) The legal name, residence, and business address if an individual or sole proprietorship, and in addition, if a partnership, corporation, lim…

The small loan agent services license is a limited license. You may only provide the following services:(1) Marketing and advertising small loans;(2) Collecting nonpublic personal information, including social security, bank account, or credit card numbers, from consumers in anti…

You must display the following information on your internet home (landing) page in a clear and conspicuous manner:(1) That you are not a lender and will not be the entity lending money to the consumer.(2) The department's name and telephone number for consumers to contact with co…

Small loan agent licensees are subject to chapter 31.45 RCW and chapter 208-630 WAC, including being subject to the following prohibitions:(1) Selling nonpublic personal information, including Social Security, bank account, or credit card numbers, to potential lenders or other en…

If the director determines that all licensing criteria of chapter 31.45 RCW have been met and the appropriate fees paid, the director shall issue a nontransferable license for the applicant to engage in the business of cashing and/or selling checks or a small loan endorsement to …

The license and small loan endorsement will remain continuously in effect until surrendered, suspended, or revoked.[Statutory Authority: RCW 31.04.165, 43.320.040, 31.45.030, 31.45.050, 31.45.200. WSR 05-22-009, § 208-630-150, filed 10/21/05, effective 11/21/05.]

Yes. You may establish one or more branch offices under your license.[Statutory Authority: Chapter 43.320 RCW, RCW 31.45.200. WSR 16-10-046, § 208-630-155, filed 4/29/16, effective 6/1/16.]

The law requires a small loan endorsement for each location where a licensee makes small loans. These locations include, in addition to traditional staffed locations, unstaffed locations at which electronic or telephonic terminals such as facsimile machines, telephones, computer …

A small loan endorsement may authorize a licensee to make small loans at a location other than the licensed location where it cashes and sells checks.[Statutory Authority: RCW 31.04.165, 43.320.040, 31.45.030, 31.45.050, 31.45.200. WSR 05-22-009, § 208-630-170, filed 10/21/05, ef…

If you sell checks, drafts, or money orders or if you have a small loan endorsement under chapter 31.45 RCW you must obtain and maintain a bond. The bond must run to the benefit of the state and any person or persons who suffer loss as a result of your actions. You must file the …

The bond must be continuous and conditioned upon your compliance with chapter 31.45 RCW and all rules in this chapter. The bond must also be conditioned upon you paying to persons who purchase monetary instruments the face value of any monetary instrument dishonored by the drawee…

The bond may be canceled by the surety by giving written notice to the director and licensee of its intent to cancel the bond. The cancellation is effective thirty days after the notice is received by the director.[Statutory Authority: RCW 31.04.165, 43.320.040, 31.45.030, 31.45.…