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Mortgage Industry Update

Licensing Updates

License Types As of October 2017 As of October 2016
Mortgage Broker Main Office 291 282
Mortgage Broker Branch Office 195 191
Consumer Loan Main Office 644 575
Consumer Loan Branch Office 2,453 2,194
MLOs - Active 15,424 14,685
MLOs - Inactive 3,195 2,472

Electronic Surety Bond Conversion

The process of converting paper surety bonds to the new Electronic Surety Bond (ESB) is now in full swing. More than 400 licensees, about 57% of Mortgage Brokers and 52% of Consumer Loan companies, have already completed this process. The Department appreciates the willingness of these licensees to jump in early to finish the conversion.

Licensees who haven’t yet converted to ESB should consider starting that process soon. The conversion deadline for Mortgage Brokers is December 31 but the Department encourages completion before November 1. The deadline for Consumer Loan companies is March 1, 2018.

Converting a paper surety bond to ESB involves granting authority to the surety company in NMLS, coordinating with the surety so the electronic bond can be created and then routing that electronic bond from the surety to the licensee and then to the Department. The following are some challenges faced by licensees:

  • A few surety producers are converting bonds systematically so timing of conversion may be set by the producer
  • Once the bond is delivered by the surety, licensees must designate a signer for the bond and that person must log into NMLS to “sign” the bond
  • Signed bonds must be designated “Mark Ready” in order to be delivered to the Department

ESB for Licensees


Preparing for Renewals – Are You Ready?

In just a few weeks, the 2018 renewal period opens. Statistics year after year show that renewal requests submitted in November have the highest chance of approval prior to the end of the year. Many licensees, however, haven’t taken the necessary steps before November 1 to ensure renewal success.

The following are things to do now to ensure readiness to renew on November 1:

Company Licensees

  • Ensure all Mortgage Call Report (MCR) filings are current, including the annual Financial Conditions required for standard filers
  • Clear all outstanding license items
  • Review the company and branch records for accuracy as the renewal attestation is a legal certification that your record is accurate
  • Finish Designated Broker’s Continuing Education which is 9 hours of NMLS approved education, including 1 hour in Washington law – Mortgage Broker Licensees Only

Mortgage Loan Originators (MLO)

  • Clear all outstanding license items
  • Review your NMLS record for accuracy as the renewal attestation is a legal certification that your record is accurate
  • Finish Continuing Education which is 9 hours of NMLS approved education, including 1 hour in Washington law
  • Retaking Pre-Licensing Education (PE) does not meet the CE requirement

Much more information about renewals, including fees, deadlines and Frequently Asked Questions, can be found at the DFI website and the NMLS Resource Center.


Closing Your License – Take the Proper Steps

The end of the year always brings a higher than usual amount of licensees opting not to renew their license. How to handle closing out your license depends on the type of license.

Company License

  • Log into NMLS and request surrender of your Washington License
    • Marking “Not Renewing” does not surrender your license
  • Provide fully completed Closure Reports to the Department within 5 days of surrendering

Branch License

  • Log into NMLS and request surrender of your Washington License
    • Marking “Not Renewing” does not surrender your license

Mortgage Industry Webinar- October 17

Join the Department for our final Mortgage Industry Webinar of 2017. The event is on October 17. Click on the link below for more details.

Mortgage Industry Webinar Details


Upcoming Dates to Remember

November 01: Start of the Renewal Period
November 14: Q3 MCR Filing Deadline
December 15: Renewal Deadline (if want renewal reviewed before year end)
December 31: End of Renewal Period