Consumer Loan Companies
Consumer loan companies doing business in Washington State must be licensed with DFI's Division of Consumer Services.
Quick Links for Consumer Loan Companies
What's New
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Surety Bond Requirements
Beginning January 1, 2010, the bond amounts required for Mortgage Broker and Consumer Loan licenses are changing. The bonding requirements will be determined annually by loan origination volume. Under the Mortgage Broker Practices Act (MBPA), the bonding amounts range from $30,000 to $60,000. Under the Consumer Loan Act (CLA), the bonding amounts range from $30,000 to $150,000. Learn more. -
Converting From A MBPA License To CLA License
Beginning January 1, 2010, non-delegated correspondent lenders licensed under the Mortgage Broker Practices Act (MBPA) must hold a Consumer Loan Act (CLA) license in order to make residential mortgage loans. To avoid potential business interruption and ensure timely licensure, DFI recommends that all MBPA licensees wishing to make residential mortgage loans apply for a CLA license no later than October 31, 2009.
Instructions On How To Convert From MBPA To CLA License -
Consumer Loan Companies Making Reverse Mortgages
EHB 1311 (PDF)* regulating reverse mortgages became effective July 26, 2009. While the department is conducting rulemaking on the provisions that create an approval process for proprietary reverse mortgage products, all provisions of the bill are now effective including the provisions, sections 12 and 13 that allow consumer loan companies to make HECMs.
If you have any questions, contact Cindy Fazio at 360-902-8800 -
Mortgage Disclosure Improvement Act Effective July 30, 2009
Notice from DFI. Regulation Z amendments implementing TILA changes are effective July 30, 2009. Many disclosures now apply to non-purchase transactions. Mortgage Brokers and Consumer Loan Companies are required to comply with the amendments by July 30, 2009.
Amendment Of Regulation Z Notice From DFI (PDF)* -
Licensing Requirements For CLA Mortgage Loan Originators
On April 20th, Governor Gregoire signed SHB 1621, a bill that will require significant regulatory changes for consumer loan companies and their mortgage loan originators. 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). Learn more. -
Loan Modifications - License Required
Companies and individuals providing loan modification services in Washington must be licensed as mortgage brokers, consumer loan companies, or loan originators. Upfront fees for services are prohibited. Learn more. - Reverse Mortgages
License holders under both the Consumer Loan Act (CLA) and Mortgage Broker Practices Act (MBPA) can broker reverse mortgages to entities exempt from the CLA (nationally chartered entities). The lending entity must be exempt from the CLA due to RCW 31.04.125, a provision in the CLA that prohibits the compounding of interest on loans secured by real estate. Examples of exempt entities are Washington chartered banks, credit unions, their affiliates or subsidiaries and nationally chartered banks, credit unions, or their affiliates or subsidiaries
Contact Cindy Fazio, 360-902-8800 if you have questions.
Laws & Rules
- Consumer Loan Law (RCW 31.04)
- Consumer Loan Rules (WAC 208-620)
- Usury Law (RCW 19.52)
- Mortgage Lending and Homeownership Law (RCW 19.144)
- Mortgage Lending and Homeownership Rules (WAC 208-600)
- MBPA & CLA FAQs
1 Page Disclosure Summary Forms And Instructions
Print Only PDF Versions of Disclosure Summary Forms
Microsoft Word Versions Of Disclosure Summary Forms
- Fixed Rate Loan Disclosure Summary Form (Word)**
- Variable Rate Loan Disclosure Summary Form (Word)**
How To Use The 1 Page Disclosure Summary Forms
Resources
- Consumer Loan Act Interpretive & Policy Statements
- Consumer Loan Interpretive Letters 1992-2003
- Letter from DFI Regarding Borrowers Facing Foreclosure (PDF)*
- Complying With The Red Flags Rule (Federal Trade Commission)
- CSBS/AARMR/NACCA Statement on Subprime Mortgage Lending
- CSBS/AARMR Guidance on Nontraditional Mortgage Product Risks
- Guide to Washington State Interest Rates
- DFI's Free Guide to Home Loans for Consumers
Contact Us
If you have any questions about consumer loan companies or obtaining a consumer loan license, feel free to contact us by phone at 360-902-8703 or toll free at 1-877 RING DFI (746-4334). You may also email us at dcs@dfi.wa.gov.
* 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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