Washington State Department of Financial Institutions

Consumer Loan Company Examination FAQs

Answers to common questions about examinations conducted by DFI.

Do Loan Originators operating under the Consumer Loan Act need a license?

As of July 1, 2010, all mortgage loan originators working for consumer loan act (CLA) companies must be licensed by the Department of Financial Institutions (DFI). To obtain additional information on application requirements and the requirement to maintain a loan originator license, visit: DFI's loan originator page.

Do licensees under the CLA have to comply with the Mortgage Disclosure Improvement Act?
As of July 30, 2009, you are required to comply with the Mortgage Disclosure Improvement Act (MDIA). DFI has provided a notice on this amendment of Regulation Z. View DFI Notice (PDF)* for more information.

As a licensee, can I make reverse mortgages under the CLA?

Effective July 26, 2009, a company licensed under the CLA can make reverse mortgages. The Engrossed House Bill 1311 is the law that implemented reverse mortgages in Washington State. The provisions in sections 12 and 13 of Engrossed House Bill 1311 allow consumer loan companies to make Home Equity Conversion Mortgage (HECM). View Engrossed House Bill 1311 (PDF)* for more information.

As a licensee, do I need a separate license for loan modifications?
No, you do not need a separate license. Companies and individuals providing loan modification services in Washington must be licensed as mortgage brokers, consumer loan companies, or loan originators. Advance fees are permitted but must be deposited into a trust account. Visit DFI's loan modification services page for more information.

Under what circumstances must I provide a separate “Disclosure Summary” on purchase loans I make?

You must provide the separate one page disclosure summary only when you do not provide a compliant GFE. See RCW 19.144.020(4). Chapter 208-600-200 WAC provides the instructions and required content of the One-page Disclosure Summary.

* This document is a PDF file, and you will need Adobe Acrobat Reader to view it. If you don't already have Acrobat Reader installed on your computer, you may download it for free from Adobe.

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