Mortgage Industry Update

Licensing Updates

License Types As of January 2017 As of January 2016
Mortgage Broker Main Office 270 266
Mortgage Broker Branch Office 167 155
Consumer Loan Main Office 583 541
Consumer Loan Branch Office 2,213 2,003
MLOs - Active 14,425 12,528
MLOs - Inactive 829 667

Consumer Loan Annual Assessment Filing Begins

It’s time for Consumer Loan licensees to file the 2016 Annual Assessment Report. The deadline to file is March 1. The Consumer Loan Annual Assessment Report is filed through the Department’s online filing system. If you have used this system before you can expect changes, including:

  • Access to the system requires filers to be a registered Secure Access Washington (SAW) user
  • Adding the “Consumer Loan Online Services” to your SAW Account requires an “Access Code” which is your prior year’s receipt code from the Department’s online system
  • Use of a pre-formatted workbook is no longer required; supporting loan data can be provided via an XML file or manual entry (only up to 30 loans per question)

Tips for a successful assessment filing:

  • Read carefully the information and instructions on the Department’s assessment website
  • Register now as a SAW user or if you already are, add “Consumer Loan Online Services”
  • Locate last year’s receipt code (5CLAR) or if you cannot locate it, email csexamsunit@dfi.wa.gov
  • If you were newly licensed in 2016, you must contact the Department to receive your access code, please email csexamsunit@dfi.wa.gov to submit your request.

Review these resources:

Other reporting deadlines are approaching for both Mortgage Broker and Consumer Loan licensees:

  • February 14 – Q4 MCR filing deadline
    • Applies to all Mortgage Broker and Consumer Loan Licensees
  • April 1 – Financial Conditions filing deadline
    • Applies to licensees filing the Standard MCR and who have a fiscal year end of 12/31

Criminal Background Checks (CBCs) Through NMLS

If you are adding a new control person(s) criminal background checks must be completed through NMLS, not with paper fingerprint cards mailed to the Department. CBC functionality for control people rolled out in September to streamline the background check process.

When completing the CBC process for a control person, be sure to not only request the CBC but also add agency access in the same filing. If the CBC processes before the Department is granted agency access, we cannot view the CBC results. Once agency access is granted, a new CBC must be requested including a new CBC fee. Refer to the MU2 CBC Quick Guide for the step by step process.

Renewal Recap

Now that the renewal period has ended, it is a great time to reflect on how it went. This past renewal period was the busiest since the Department joined NMLS. For MLOs only, more than 17,000 licensees could have renewed. This is the highest number since the start of MLO licensing in 2007 and represents a more than 18% increase from the previous year.

Mortgage Loan Originator Renewal Numbers

The steady trend upward in the number of MLO renewals and the fact each request required a criminal background check and credit check could have made success this year very challenging. This was not the case, however. By December 31, 99% of MLO renewal requests submitted were completed and those not processed were due to outstanding license items.

Working through the renewal requests, a few common errors appeared:

  • Failure to Disclose: A significant number of MLOs had a new bankruptcy, lien, judgment or foreclosure but hadn’t updated the disclosure question(s). Others had a regulatory action which wasn’t disclosed. MLOs have a 10 business day reporting requirement for changes to NMLS disclosure questions. WAC 208-620-710(27)
  • Paid Lien and Judgments: Another number of MLOs had a lien or judgment reflected on their credit report but they had proof of payment, a lien release or satisfaction paperwork. While these documents are accepted by the Department, MLOs must provide these documents to TransUnion so their credit reports can be updated. In many cases, the release and satisfaction documents are several years old yet the lien or judgment still shows as outstanding.
  • Outstanding License Items: The most significant delay in renewal processing was caused by MLOs with outstanding license items. Examples include: legal name issues, and employment and disclosure issues. Most license items impacting renewals were months old! MLOs must respond immediately to system emails regarding the placement of a license item or regularly monitor their NMLS record for active license items.

As a reminder, we are in the middle of a two month reinstatement period. MLOs who did not renew their license for 2017 can submit a late renewal through NMLS. The process to renewal is the same as during the renewal period, there is just a $62.50 late fee added and a 2017 Declaration of Activity is required. The deadline to reinstate an expired MLO license is February 28.

For more information, see: Annual Renewal Information