Title 31 — Title 31 MISCELLANEOUS LOAN AGENCIES
8 chapters · 280 sections in this title.
RCW 31.04.015 Definitions.
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The definitions set forth in this section apply throughout this chapter unless the context clearly requires a different meaning.(1) "Add-on method" means the method of precomputing interest payable on a loan whereby the interest to be earned is added to the principal balance and …
RCW 31.04.025 Application of chapter.
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(1) Each loan made to a resident of or a person physically located in this state by a licensee, or persons subject to this chapter, is subject to the authority and restrictions of this chapter.(2) A person may not engage in any device, subterfuge, or pretense to evade the require…
RCW 31.04.027 Violations of chapter.
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(1) It is a violation of this chapter for a licensee, its officers, directors, employees, or independent contractors, or any other 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…
RCW 31.04.035 License required—When violation occurs.
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(1) No person may engage in any activity subject to this chapter without first obtaining and maintaining a license in accordance with this chapter.(2) If a transaction violates subsection (1) of this section, any:(a) Nonthird-party fees charged in connection with the origination …
RCW 31.04.045 License—Application—Background checks—Fee—Surety bond.
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(1) Application for a license under this chapter must be made to the nationwide mortgage licensing system and registry or in the form prescribed by the director. The application must contain at least the following information:(a) The name and the business addresses of the applica…
RCW 31.04.055 License—Director's duties.
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(1) The director shall issue and deliver a license to the applicant to make loans in accordance with this chapter at the location specified in the application if, after investigation, the director finds that:(a) The applicant has paid all required fees;(b) The applicant has submi…
RCW 31.04.065 License—Information contained.
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The license shall state the address at which the business is to be conducted and shall state fully the name of the licensee, and if the licensee is a copartnership or association, the names of its members, and if a corporation, the date and place of its incorporation. The license…
RCW 31.04.075 Licensee—Place of business.
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(1) The licensee may not maintain more than one place of business under the same license unless:(a) The director authorizes more than one license to the same licensee upon approval of an application by the licensee in a form and manner established by the director; or(b) The place…
RCW 31.04.085 Licensee—Assessment—Bond—Time of payment.
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(1) A licensee shall, for each license held by any person, on or before the first day of each March, pay to the director an annual assessment as determined by rule by the director. The licensee shall be responsible for payment of the annual assessment for the previous calendar ye…
RCW 31.04.093 Licensing—Applications—Regulation of licensees—Director's duties and authority—Fines—Orders—Statute of limitations.
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(1) The director must enforce all laws and rules relating to the licensing and regulation of licensees and persons subject to this chapter. However, the director's obligation under this subsection does not arise until the rules required under RCW 31.04.405 are adopted or until Ja…
RCW 31.04.102 Loans secured, or not secured, by lien on real property—Licensee's obligations—Disclosure of fees and costs to borrower—Time limits.
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(1) For all loans made by a licensee that are not secured by a lien on real property, the licensee must make disclosures in compliance with the truth in lending act, 15 U.S.C. Sec. 1601 and regulation Z, 12 C.F.R. Part 1026, and all other applicable federal laws and regulations.(…
RCW 31.04.105 Licensee—Powers—Restrictions.
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Every licensee may:(1) Lend money at a rate that does not exceed twenty-five percent per annum as determined by the simple interest method of calculating interest owed;(2) In connection with the making of a loan, charge the borrower a nonrefundable, prepaid, loan origination fee …
RCW 31.04.115 Open-end loan—Requirements—Restrictions—Options.
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(1) As used in this section, "open-end loan" means an agreement between a licensee and a borrower that expressly states that the loan is made in accordance with this chapter and that provides that:(a) A licensee may permit the borrower to obtain advances of money from the license…
RCW 31.04.125 Loan restrictions—Interest calculations.
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(1) No licensee may make a loan using any method of calculating interest other than the simple interest method; except that the add-on method of calculating interest may be used for a loan not secured by real property or personal property used as a residence when the repayment pe…
RCW 31.04.135 Advertisements or promotions.
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No licensee may advertise, print, display, publish, distribute, or broadcast or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any manner whatsoever, any statement or representation with regard to the rates, terms, or conditions for…
RCW 31.04.143 Subpoena authority—Application—Contents—Notice—Fees.
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(1) The director or authorized assistants may apply for and obtain a superior court order approving and authorizing a subpoena in advance of its issuance. The application may be made in the county where the subpoenaed person resides or is found, or the county where the subpoenaed…
RCW 31.04.145 Investigations and examinations—Director's duties and powers—Production of information—Costs.
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(1) For the purpose of discovering violations of this chapter or securing information lawfully required under this chapter, the director may at any time, either personally or by designees, investigate or examine the loans and business and, wherever located, the books, accounts, r…
RCW 31.04.155 Licensee—Recordkeeping—Director's access—Report requirement—Failure to report.
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The licensee shall keep and use in the business such books, accounts, records, papers, documents, files, and other information as will enable the director to determine whether the licensee is complying with this chapter and with the rules adopted by the director under this chapte…
RCW 31.04.165 Director—Broad administrative discretion—Rule making—Actions in superior court.
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(1) The director has the power, and broad administrative discretion, to administer and interpret this chapter to facilitate the delivery of financial services to the citizens of this state by persons subject to this chapter. The director shall adopt all rules necessary to adminis…
RCW 31.04.168 Director—Powers under chapter 19.144 RCW.
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The director or the director's designee may take such action as provided for in this chapter to enforce, investigate, or examine persons covered by chapter 19.144 RCW.[ 2008 c 108 s 16.]Notes:Findings—2008 c 108: See RCW 19.144.005.
RCW 31.04.175 Violations—No penalty prescribed—Gross misdemeanor—Good faith exception.
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(1) A person who violates, or knowingly aids or abets in the violation of any provision of this chapter, for which no penalty has been prescribed, and a person who fails to perform any act that it is his or her duty to perform under this chapter and for which failure no penalty h…
RCW 31.04.202 Application of administrative procedure act.
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The proceedings for denying license applications, issuing cease and desist orders, suspending or revoking licenses, and imposing civil penalties or other remedies under this chapter, and any review or appeal of such action, shall be governed by the provisions of the administrativ…
RCW 31.04.205 Enforcement of chapter—Director's discretion—Hearing—Sanctions—Recovery of costs.
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(1) The director or designated persons may, at his or her discretion, take such action as provided for in this chapter to enforce this chapter. If the person subject to such action does not appear in person or by counsel at the time and place designated for any administrative hea…
RCW 31.04.208 Application of consumer protection act.
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The legislature finds that the practices governed by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. Any violation of this chapter is not reasonable in relation to the development and prese…
RCW 31.04.211 Application of chapter—2009 c 120.
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The authority of this chapter remains in effect, whether such a licensee, individual, or person subject to chapter 120, Laws of 2009 acts or claims to act under any licensing or registration law of this state, or claims to act without such an authority.[ 2009 c 120 s 9.]Notes:Fin…
RCW 31.04.221 Mortgage loan originator—License required—Unique identifier required.
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An individual defined as a mortgage loan originator must not engage in the business of a mortgage loan originator without first obtaining and maintaining annually a license under this chapter. Each licensed mortgage loan originator must register with and maintain a valid unique i…
RCW 31.04.224 Licensing exemptions—Residential mortgage loans.
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The following are exempt from licensing as mortgage loan originators under this chapter:(1) Registered mortgage loan originators, or any individual required to be registered while actively employed by a covered financial institution as defined in regulation G, 12 C.F.R. Part 1007…
RCW 31.04.227 Mortgage loan origination—Independent contractors.
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An independent contractor may not engage in residential mortgage loan origination activities as a loan processor unless the independent contractor obtains and maintains a license under this chapter. Each independent contractor *loan processor licensed as a mortgage loan originato…
RCW 31.04.231 Individual loan processor—Licensing exemptions.
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An individual engaging solely in *loan processor activities, who does not represent to the public, through advertising or other means of communicating or providing information including the use of business cards, stationery, brochures, signs, rate lists, or other promotional item…
RCW 31.04.234 Mortgage loan originator license—Application form and content.
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Applicants for a mortgage loan originator license shall apply on a form as prescribed by the director. Each form must contain content as set forth by rule, regulation, instruction, or procedure of the director and may be changed or updated as necessary by the director in order to…
RCW 31.04.237 Use of nationwide mortgage licensing system and registry.
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In order to fulfill the purposes of chapter 120, Laws of 2009, the director is authorized to establish relationships or contracts with the nationwide mortgage licensing system *and registry or other entities designated by the nationwide mortgage licensing system *and registry to …
RCW 31.04.241 Mortgage loan originator application—Required submission and use of personal information.
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(1) As part of or in connection with an application for any license under this section, or periodically upon license renewal, the mortgage loan originator applicant shall furnish information concerning his or her identity, including fingerprints for submission to the Washington s…
RCW 31.04.244 Mortgage loan originator application—Required information—Fees.
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(1) The application for a mortgage loan originator license must contain at least the following information:(a) The name, address, date of birth, and social security number of the mortgage loan originator applicant, and any other names, dates of birth, or social security numbers p…
RCW 31.04.247 Issuance of mortgage loan originator license—Necessary findings.
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(1) The director must issue and deliver a mortgage loan originator license if, after investigation, the director makes at a minimum the following findings:(a) The applicant has paid the required license fees;(b) The applicant has met the requirements of this chapter;(c) The appli…
RCW 31.04.251 Mortgage loan originator license—Renewal—Surrender—Rules.
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(1) A mortgage loan originator license issued under this section expires annually. The director shall establish rules regarding the mortgage loan originator license renewal process created under this chapter. At a minimum a mortgage loan originator may not renew a license under t…
RCW 31.04.254 Mortgage loan originator licensing process—Rules—Interim procedures.
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For the purposes of implementing an orderly and efficient mortgage loan originator licensing process, the director may establish licensing rules and interim procedures for licensing and acceptance of applications. For previously registered or licensed individuals the director may…
RCW 31.04.257 Mortgage loan originator interim license.
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To prevent undue delay in the issuance of a mortgage loan originator license and to facilitate the business of a mortgage loan originator, an interim license with a fixed date of expiration may be issued when the director determines that the mortgage loan originator has substanti…
RCW 31.04.261 Mortgage loan originator—Prelicensing education requirements.
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(1) Each mortgage loan originator applicant shall complete at least twenty hours of prelicensing education approved by the nationwide mortgage licensing system *and registry. The prelicensing education shall include at least three hours of federal law and regulations; three hours…
RCW 31.04.264 Mortgage loan originator—Testing requirements.
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(1) To obtain a mortgage loan originator license, an individual must pass a test developed by the nationwide mortgage licensing system *and registry and administered by a test provider approved by the nationwide mortgage licensing system *and registry based upon reasonable standa…
RCW 31.04.267 Mortgage loan originator—Continuing education requirements.
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(1) A licensed mortgage loan originator must complete a minimum of eight hours of continuing education approved by the nationwide mortgage licensing system *and registry which must include at least three hours of federal law and regulations; two hours of ethics, which must includ…
RCW 31.04.271 Mortgage loan originators—System information may be challenged.
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The director shall establish a process whereby mortgage loan originators may challenge information entered into the nationwide mortgage licensing system *and registry by the director.[ 2009 c 120 s 25.]Notes:*Reviser's note: The term "and registry" was removed by 2013 c 29 s 1.Fi…
RCW 31.04.274 Information provided to nationwide mortgage licensing system and registry—Confidentiality—Restrictions on sharing.
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(1) Except as otherwise provided in section 1512 of the S.A.F.E. act, the requirements under any federal law or chapter 42.56 RCW regarding the privacy or confidentiality of any information or material provided to the nationwide mortgage licensing system *and registry, and any pr…
RCW 31.04.277 Consumer loan companies—When reports of condition are required.
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Each consumer loan company licensee must submit call reports through the nationwide mortgage licensing system in a form and containing the information prescribed by the director or as deemed necessary by the nationwide mortgage licensing system.The director's obligations or dutie…
RCW 31.04.281 Reports of violation—2009 c 120.
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The director is authorized to regularly report violations of chapter 120, Laws of 2009, as well as enforcement actions and other relevant information, to the nationwide mortgage licensing system *and registry.[ 2009 c 120 s 28.]Notes:*Reviser's note: The term "and registry" was r…
RCW 31.04.284 Mortgage loan originator—Unique identifier—Display.
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The unique identifier of any mortgage loan originator must be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule, regulation, or order of the dire…
RCW 31.04.290 Residential mortgage loan servicer—Requirements—Written detailed information.
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(1) A residential mortgage loan servicer must comply with the following requirements:(a) Any fee that is assessed by a servicer must be assessed within forty-five days of the date on which the fee was incurred and must be explained clearly and conspicuously in a statement mailed …
RCW 31.04.293 Residential mortgage loan modification services—Written disclosure summary—Limitation on fees—Rules.
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(1) In addition to any other requirements under federal or state law, an advance fee may not be collected for residential mortgage loan modification services.(2) A written disclosure summary of all material terms of the services to be provided must be provided to the borrower.(3)…
RCW 31.04.297 Third-party residential mortgage loan modification services providers—Duties—Restrictions.
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(1) In addition to complying with federal law and all requirements for loan originators under this chapter, third-party residential mortgage loan modification services providers must:(a) Provide a written disclosure summary as described in RCW 31.04.293;(b) Not receive advance fe…
RCW 31.04.300 Residential mortgage loan servicer—Liquidity, operating reserves, tangible net worth requirements.
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(1) A residential mortgage loan servicer licensee must maintain liquidity, operating reserves, and a tangible net worth in accordance with generally accepted accounting principles as determined by the director. The director may adopt rules to interpret this subsection.(2) A resid…
RCW 31.04.310 Residential mortgage or student education loan servicer—Appointment of receiver.
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Upon application by the director and upon a showing that the interests of borrowers or creditors so requires, the superior court may appoint a receiver to take over, operate, or liquidate any residential mortgage or student education loan servicer.The director's obligations or du…