Washington State Department of Financial Institutions

Loan Processors FAQs

See below for DFI's answers to questions frequently asked about Loan Processors.

I work as a Loan Processor. Must I have a Loan Originator or Mortgage Broker license as of January 1, 2007?

1. You will not have to be licensed with DFI under the following scenarios:

  1. You are a W2 employee Loan Processor for a licensed mortgage broker(s). Generally, you must work from a licensed location (main or branch office). See WAC 208-660-300(14) for more information.

  2. You are a W2 employee Loan Processor for a loan processing company that has a mortgage broker license. Generally, you must work from a licensed location. See WAC 208-660-300(14) for more information.

2. You must have a license with DFI under the following scenarios:

  1. You must have a loan originator license if you work as an independent contractor Loan Processor (receive a 1099) for a licensed mortgage broker. You must work from a licensed location under the mortgage broker license.

  2. You must have a loan originator license if you work as an independent contractor Loan Processor (receive a 1099) for a loan processing company. You must work from a licensed location under the loan processing company's mortgage broker license.

  3. You must have a mortgage broker license if you own a processing company that independently contracts (receives a 1099) with licensed mortgage brokers to process loans. Your W2 employees and independent contractors (1099 paid workers) must work from a licensed location. Your independent contractors must be licensed as loan originators.

Currently as a Loan Processor, I get paid directly from the closing table - not a W2 and not a 1099 - where do I fit in this guidance?

Only the licensed mortgage broker and bona fide third party service providers may be paid from the closing table.


I'm an independent contractor Loan Processor working from one mortgage broker company’s licensed branch office, but I want to process loans for many mortgage brokers at this location. Does each mortgage broker company need to license this location as a branch, or because it's already a licensed location may I just relate my loan originator license to the many mortgage brokers and keep working just from this location?

The loan documents for each mortgage broker must be handled at a licensed location. Any of these options are acceptable:


I am an independent contractor Loan Processor working from a mortgage broker company’s licensed branch office. May I process loans for other mortgage brokers from this location?

Once you receive your loan originator license, either of these options is acceptable:


How must Loan Processors handle loan files?

Follow these guidelines when processing loan files:

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