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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FAQs Prior to Rulemaking on SB 6471
In order to assist individuals and entities affected by SB 6471 DFI has made pre-rulemaking interpretations. View FAQs.
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DFI Is Now Managing Consumer Loan Company Licenses Through The NMLS
Effective May 1, 2008, all new applications and amendments for Consumer Loan Licenses must be completed through the Nationwide Mortgage Licensing System (NMLS). Learn more.
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Attention Washington Consumer Loan Companies - New Licensing Requirements
Senate Bill 6471 (Chapter 78, Laws of 2008), passed by the legislature, and signed by the Governor on March 19, 2008, requires that all lenders doing business in Washington be licensed by the Department of Financial Institutions under the Consumer Loan Act (chapter 31.04 RCW) by June 12, 2008. The Department of Financial Institutions will begin accepting new applications for Consumer Loan Act licenses on May 1, 2008, through the Nationwide Licensing System.
You can preview the application materials on-line at: http://dfi.wa.gov/cs/consumer_loan_apply.htm
You can preview features of the NMLS on-line at: http://www.stateregulatoryregistry.org/NMLS/AM/Template.cfm?Section=Home3
Receive updates via email by subscribing to the Consumer Loan Company ListServ.
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Legislative Update
Two pieces of legislation passed during the recent session amend the Consumer Loan Act, chapter 31.04 RCW.
Make sure you to stay up to date by signing up for Consumer Loan ListServ.
1. SHB 2770 (PDF)* – the Governor’s Omnibus legislation implementing the recommendations of the Homeownership Task Force. This legislation impacts Banks, Credit Unions, the Consumer Loan Act (CLA), and the MBPA. The bill addresses prepayment penalties, negative amortization loans, the federal guidance on nontraditional mortgage products and subprime lending, and makes mortgage fraud a class B felony.
2. SB 6471 (PDF)* – This legislation amends the CLA and MBPA. All lenders, except those making loans under chapter 63.14 RCW, must have a license under the Consumer Loan Act. Lending is no longer allowed under the MBPA.
DFI will begin rulemaking this spring to implement the changes.
Laws & Rules
- Consumer Loan Law (RCW 31.04)
- Consumer Loan Rules (WAC 208-620)
- Usury Law (RCW 19.52)
Resources
- Consumer Loan Act Interpretative & Policy Statements
- Consumer Loan Interpretive Letters 1992-2003
- Letter from DFI Regarding Borrowers Facing Foreclosure (PDF)*
- 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
Keeping Data Secure
To protect non-public sensitive information from unauthorized access, the Department of Financial Institutions (DFI) does not send, receive, or request the transmission of unencrypted electronic non-public sensitive information. Learn more...
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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