Washington Administrative Code

The purpose of this database system is to:(1) Prevent the practice of refinancing a small loan with another small loan;(2) Prevent multiple licensees from making simultaneous small loans to an individual borrower so that the loans' total principal balance exceeds the lesser of se…

(1) Beginning January 1, 2010, each small loan transaction must be registered with the database system and receive a database system-generated transaction authorization number. The transaction authorization number demonstrates that the transaction has been recorded in the databas…

(1) You must deliver to the borrower at the time you make a small loan, a disclosure that meets the requirements of all applicable laws, including the federal Truth in Lending Act. Compliance with the federal Truth in Lending Act and Regulation Z, 12 C.F.R. Part 226, will be deem…

The disclosure must be substantially in the following form:Your right to rescind (cancel) this loan. You have the right to rescind this loan by returning the amount of the loan in cash, or returning the check given to you by us to our office by the close of business on our next b…

(1) If you make small loans you must post the following notices conspicuously at each location where small loans are made:(a) A notice substantially in the form set forth in WAC 208-630-570; and(b) A notice of how consumers may contact the department, substantially in the followi…

All disclosures must be presented in a manner and physical format that is clear, conspicuous and designed to call attention to each right and responsibility of the borrower and lender being disclosed. Except for the disclosure that is required on the application (see WAC 208-630-…

A licensee must maintain in its files sufficient information to show compliance with the consumer disclosure requirements of chapter 31.45 RCW, these rules, and state and federal law.[Statutory Authority: RCW 31.04.165, 43.320.040, 31.45.030, 31.45.050, 31.45.200. WSR 05-22-009, …

Yes. Throughout 2010, when you take a small loan application or use any other form to initiate a small loan, or upon request by a borrower who has not yet made application for a small loan, you must provide to the borrower a written notice with content produced by the department,…

Yes. 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 the books and records relating to the licensee's business triggering the license requirement. The plan must be maintained as part of t…

Yes. Licensees must have written policies and procedures for the destruction of records relating to the licensee's business triggering the license requirement, including electronic records, when the two-year retention period ends. The destruction of records must be accomplished s…

You must maintain the records in this section for at least two years.(1) Generally, you must maintain the books, accounts, records, papers, documents, files, and other information relevant to the business.(2) Specifically, you must maintain a record of transactions conducted. The…

Licensees may maintain records required in combined form, hand or machine posted, or automated, and licensees may maintain them on any electronic, magnetic, optical or other storage media. However the licensee must maintain the necessary technology to permit access to the records…

Upon request of the director or director's designee a licensee must within one business day make available, either directly or through a third party, a record of the previous day's transactions.[Statutory Authority: RCW 31.04.165, 43.320.040, 31.45.030, 31.45.050, 31.45.200. WSR …

Licensees must maintain a general ledger containing records of all assets, liabilities, capital, income, and expenses. The licensee must post a general ledger from the daily record of checks cashed or other record of original entry, at least monthly, and it must be maintained in …

A licensee may maintain a consolidated general ledger reflecting activity at two or more locations by the same licensee provided that the licensee maintain books of original entry separately for each location.[Statutory Authority: RCW 31.04.165, 43.320.040, 31.45.030, 31.45.050, …

Every licensee must maintain personnel files for its employees. Each file must contain the employee's full name, date of birth, date of hire and date of termination, last known address and Social Security number.[Statutory Authority: RCW 31.04.165, 43.320.040, 31.45.030, 31.45.05…

(1) If you have a small loan endorsement, each loan file must contain at least a record of the application, a record of the note or loan agreement, a record of the documentation used to substantiate the borrower's gross income, a record of the borrower's identification verificati…

All monetary instruments issued by check sellers must be drawn on a financial institution domiciled in the United States.[Statutory Authority: RCW 31.04.165, 43.320.040, 31.45.030, 31.45.050, 31.45.200. WSR 05-22-009, § 208-630-680, filed 10/21/05, effective 11/21/05.]

Once a licensee cashes a monetary instrument the licensee must send the monetary instrument for deposit to the licensee's account at a depository financial institution located in Washington state or send it for collection not later than the close of business on the third business…

(1) If you have a small loan endorsement you may not deposit a monetary instrument accepted in the course of making a small loan under the act prior to the due date of the small loan or any date disclosed on the note or small loan agreement.(2) If the borrower notifies you that h…

Each licensee must comply with applicable federal and state laws including, but not limited to, applicable provisions of the following:(1) Washington laws: Chapter 63.29 RCW, the Uniform Unclaimed Property Act.(2) Federal Laws and Regulations:• "Bank Secrecy Act (BSA)" means the …

Each licensee must obtain, verify and maintain records of identifying information about its customers to the extent required by applicable law, including, without limitation, in the following situations:(1) When completing and filing suspicious activity reports (SARs) of any susp…

(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…

Licensees must comply with Regulation P.(1) At a minimum, licensees must:(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 persona…

Maybe. 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.[Stat…

Licensees may be required to register as a money services business (MSB) under the Bank Secrecy Act, 31 U.S.C. Section 5330, or any regulations promulgated thereunder. Generally, an MSB is a business that cashes checks or exchanges currency (other than as an agent for another bus…

A licensee who qualifies as a money services business under the Bank Secrecy Act must develop, implement, and maintain an effective anti-money laundering program consistent with federal law and the requirements of 31 C.F.R. Section 103.125.[Statutory Authority: RCW 43.320.040. WS…

Each licensee shall maintain detailed records to satisfy currency transaction reporting and suspicious activity reporting requirements of the United States Treasury Department.Each licensee shall implement an antimoney laundering program that includes the development of internal …

Because you are responsible for their actions, including violations, you must ensure that any employee or person who engages in business on your behalf (including agents) under the authority granted by chapter 31.45 RCW has sufficient understanding of the law and rules to assure …

(1) It is a violation of this chapter for any person subject to this chapter to:(a) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead any borrower, to defraud or mislead any lender, or to defraud or mislead any person;(b) Directly or indirectly e…

On or before April 15th of each year, you must submit the following reports:(1) Annual financial statements. The financial statements must include at least a balance sheet and a statement of income prepared in accordance with generally accepted accounting principles. If you have …

If you do not file the financial statements (if due at that time), assessment report, consolidated annual report, and pay the annual assessment fee by April 15 of each year, the director will send you a notice of suspension and assess a late fee of twenty-five percent of the annu…

(1) You must notify the director in writing within five days of the occurrence of any of the following significant developments:(a) Your company filing for a chapter 7 or 11 bankruptcy;(b) Your company receiving notification of a license revocation procedure against it in any sta…

(1) You must notify the department at least thirty days before ceasing operations. The notice must be in writing, signed by a principal of the small loan licensee, and include the following:(a) The date you will cease small loan activity;(b) A list of all open and pending transac…

Financial statements contained in the annual report may be prepared by outside accountants or by the licensee's own accountants.[Statutory Authority: RCW 31.04.165, 43.320.040, 31.45.030, 31.45.050, 31.45.200. WSR 05-22-009, § 208-630-840, filed 10/21/05, effective 11/21/05.]

If you are engaged in the business of selling monetary instruments you must submit to the director, at your own expense, a closing annual report containing audited financial statements as of the effective date of the surrender or revocation. The director must receive the closing …

If you are not engaged in the business of selling monetary instruments you must submit to the director at your own expense a closing annual report covering the twelve months ending with the surrender or closure date, or for such other time period as the director may specify. The …

For good cause and upon written request, the director may extend the time for compliance with reporting requirements if you make the request at least ten days prior to the date the report is due.[Statutory Authority: RCW 43.320.040, 31.45.200, and 2009 c 510. WSR 09-24-089, § 208…

A licensee shall, when requested by the director, for good cause, submit its unaudited financial statement, prepared in accordance with generally accepted accounting principles and consisting of at least a balance sheet and statement of income as of the date and for the period sp…

The director may reject any financial statement, report, certificate, or opinion filed pursuant to this section. The director must notify the licensee or other person required to make such filing of its rejection and the cause thereof.[Statutory Authority: RCW 31.04.165, 43.320.0…

Within thirty days after the receipt of such notice, the licensee or other person shall correct such deficiency. The director shall retain a copy of all filings so rejected.[Statutory Authority: RCW 31.04.165, 43.320.040, 31.45.030, 31.45.050, 31.45.200. WSR 05-22-009, § 208-630-…

(1) At least monthly a licensee in the business of selling checks must withdraw from the trust account an amount equal to fees earned for the corresponding period from the sale of monetary instruments. The remaining balance of the trust account must be sufficient to cover all mon…

(1) What is the purpose of the Mortgage Broker Practices Act? The purpose of the Mortgage Broker Practices Act is to establish a state system of licensure and rules of practice and conduct for mortgage brokers and loan originators, to promote honesty and fair dealing with citizen…

What definitions are applicable to these rules? Unless the context clearly requires otherwise, the definitions in this section apply throughout these rules.(1) "Act" means the Mortgage Broker Practices Act, chapter 19.146 RCW.(2) "Advertising material" means any form of sales or …

(1) What does good standing mean? For the purposes of the act and these rules, good standing means that the applicant, licensee, or other person subject to the act demonstrates financial responsibility, character, and general fitness sufficient to command the confidence of the co…

(1) Who is exempt from all provisions of the act? Any person doing business under the laws of the state of Washington or the United States and any federally insured depository institution doing business under the laws of any other state relating to commercial banks, bank holding …

(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…

Residential mortgage loan modification services means activities conducted by persons not engaged in servicing the borrower's existing residential mortgage loan. The activities may include negotiating, attempting to negotiate, arranging, attempting to arrange, or otherwise offeri…

"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…

"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 origi…