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Mortgage Industry Update

Licensing Updates

License Types As of July 2017 As of July 2016
Mortgage Broker Main Office 287 274
Mortgage Broker Branch Office 190 188
Consumer Loan Main Office 633 555
Consumer Loan Branch Office 2,354 2,087
MLOs - Active 15,102 14,000
MLOs - Inactive 2,609 1,907

Electronic Surety Bond Conversion Update

Thank you to all mortgage licensees who completed the process of converting their paper surety bond to the new electronic surety bond (ESB) in NMLS. As of the end of June, 107 Mortgage Broker licensees and 233 Consumer Loan licensees have electronic bonds on NMLS. Mortgage Broker licensees must convert their bond to ESB in order to renew. Consumer Loan licensees have until March 1, 2018.

The benefits of converting to the electronic bond in NMLS are many. Electronic bonds eliminate paper bond documents which must be signed and sealed. ESB significantly reduces the lag time in delivering bond materials and removes postage costs to mail original bond paperwork. The ESB process is streamlined and more transparent. For example, the notice of a bond cancellation will be filed in NMLS, generating a real time notification to the regulator and licensee.

When converting your paper bond to ESB, make sure to check the electronic bond for the following before designating the bond “Marked Ready:”

  • Converted Bond – If you are converting a paper surety bond to ESB, the bond must be marked ‘converted’ which means converted language appears at the top of the bond. The new bond marking is only for bonds which never existed in paper form.
  • Bond Number – Verify the bond number on your copy of your paper bond form matches the bond number listed on the ESB in NMLS.
  • Bond Amount – Verify the bond amount on the ESB matches the current amount of your bond.
  • Signatory (signer of bond for licensee) – Washington has restrictions by license type on who can sign the bond. For Mortgage Brokers, it must be an owner of the company unless the licensee is owned by a company then it must be an officer. For Consumer Loan licensees, the bond must be signed by a person listed in the Direct Owner/Executive Officer section of the company form.

Once your bond is converted to ESB, all bond documents must be issued through NMLS. There should no longer be any paper bond documents issued. Resources for converting your bond to ESB can be found at ESB for Licensees.

Preparing for Renewals

It might seem strange to talk about renewals in July, but taking action during the summer months helps ensure a smoother renewal in November. What can be done now? Complete the required continuing education (CE). Classes are available year round with plenty of space and less pressure than during the fall.

On July 15, all individuals who are not CE compliant receive the annual CE reminder license item in NMLS. Companies and individuals can use this license item to track those who haven’t completed CE and aren’t eligible to renew. To find CE courses, view the NMLS Master Course Catalog.

Upcoming Dates

  • August 14 - Q2 Mortgage Call Report Filing Deadline