Washington Administrative Code

"Loan originator" or "mortgage loan originator" means a natural person who for direct or indirect compensation or gain, or in the expectation of direct or indirect compensation or gain:• Takes a residential mortgage loan application; or• Offers or negotiates terms of a mortgage l…

"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 …

(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 es…

(1) May I originate residential mortgage loans in Washington without a license? No. Mortgage brokers must have a valid Washington license, or be exempt from licensing pursuant to RCW 19.146.020, and must maintain a sponsored loan originator who is approved by the director, in ord…

(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 des…

(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…

(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 …

(1) Must a licensed mortgage broker have a designated broker? Yes. Licensed mortgage broker companies must have an approved designated broker at all times.(2) How many designated brokers may a mortgage broker have? The mortgage broker may appoint only one individual to be the des…

(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 m…

(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 cr…

(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 c…

(1) Where can I get information about continuing education? The NMLS will publish a list of approved courses and providers. The providers will have detailed information about the continuing education courses they offer. The department will accept the continuing education courses …

(1) May I work as a loan originator for more than one mortgage broker? Yes.(2) How do I obtain approval to work for more than one mortgage broker? Using the NMLS, the company will submit a sponsorship request. The department will notify you and others associated with your license…

(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…

(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…

(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; th…

(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…

(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, cons…

(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…

(1) What are trust funds? Trust funds are all funds received from borrowers, or on behalf of borrowers, for payments to third-party providers. The funds are considered to be held in trust immediately upon receipt. Trust funds include, but are not limited to, borrower deposits for…

(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 outsi…

(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, mus…

(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 …

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 and 19.1…

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) 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 ex…

(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 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…

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.[Statutory …

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.[Statutory Authority: Chapter 43.320 RCW, RCW 19…

(1) What may I request of an appraiser? You may request an area or market survey. While there are no strict definitions of these terms, generally they refer to general information regarding a region, area, or plat. The information usually includes the high, low and average sales …

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 tha…

(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 departme…

(1) What is an investigation? An investigation is an inquiry to determine compliance with the act and rules, to assess allegations of wrongdoing, or to evaluate the licensing qualifications of persons subject to the act. The inquiry may involve extensive research, fact gathering,…

(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 administra…

Reserved.[Statutory Authority: RCW 43.320.040, 19.146.223, 2006 c 19. WSR 06-23-137, § 208-660-540, filed 11/21/06, effective 1/1/07.]

(1) Mortgage broker licenses.Mortgage broker - License application fee$371.00Mortgage broker - Annual assessment (due upon initial licensing, then an annual renewal fee, per location)$530.00Mortgage broker late renewal assessment (fifty percent of annual assessment)$265.00Mortgag…

(1) Who may offer prelicensing and continuing education courses to principals, designated mortgage brokers, and loan originators? Prelicensing and continuing education is offered by course providers and courses approved through NMLS.(2) On what topics of education will I be teste…

(1) What is the role of the mortgage broker commission (commission)? The commission acts in an advisory capacity to the director on mortgage broker issues. The commission advises the director on the characteristics and needs of the mortgage broker profession.(2) Who serves on the…

Reserved.[Statutory Authority: RCW 43.320.040, 19.146.223, 2006 c 19. WSR 06-23-137, § 208-660-800, filed 11/21/06, effective 1/1/07.]

What definitions are applicable to these rules? Unless the context clearly requires otherwise, the definitions in this section apply throughout these rules."Act" means the Escrow Agent Registration Act, codified under chapter 18.44 RCW."Applicant" means any person applying for an…

(1) Do I need an escrow license to provide escrow services? Unless you fall into one of the exceptions in RCW 18.44.021, you must have a license under the act before providing escrow services.(2) I only plan on performing one or two escrow transactions. Do I need an escrow licens…

(1) I am licensed to practice law in Washington. Am I excepted from licensing as an escrow agent? Yes, as long as you only perform escrow services as part of your law practice. You are excepted from licensure as an escrow agent while you are engaged in the practice of law, but yo…

What kinds of credit and character reports must I provide with my escrow agent application?(1) If you are applying for an escrow officer license you must provide:(a) Proof that you have passed the escrow officer test; and(b) Satisfactory proof of your good character; and(c) Satis…

(1) Can I transfer my escrow agent or escrow officer license to another person or entity? No. Neither an escrow agent license nor an escrow officer's license may be transferred.(2) Can all or substantially all of the assets of an escrow agent be transferred to another person? Yes…

(1) If you are applying for an escrow agent license:(a) You must submit fingerprint identification for the natural person making the application, and for your principal officers, designated escrow officer or branch designated escrow officers, and any controlling person. This iden…

(1) If you are applying for an escrow officer license:(a) You must submit fingerprint identification on standard Federal Bureau of Investigation fingerprint cardstock or another form acceptable to the department.(b) You may be required, at the department's discretion, to provide …

(1) How do I take the escrow officer test? While the director determines the form and content of the escrow officer test with the advice of the escrow committee, the test is administered by a third-party company under a contract with the department. It is given at least annually.…

(1) Escrow officer and agent fees charged by DFI:Title of FeeFeeEscrow officer: First test$168.00 Subsequent tests168.00 Application179.26 License renewal179.26 Transfer of license to a new escrow agent, name or address change, or license activation28.01 Duplicate license28.01Esc…

Yes. The director may waive any or all of the fees and assessments imposed under WAC 208-680-155, in whole or in part, when he or she determines that both of the following factors are present:(1) The consumer services program fund exceeds the projected acceptable minimum fund bal…