Mortgage Broker News
Below you will find Mortgage Broker news and updates from the Division of Consumer Services.
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News and Updates
Winter 2013 Newsletter
The Division of Consumer Services Winter 2013 newsletter is now available.
Rules Adopted Increasing Prelicensing Education Hours by Two Additional Hours
DFI has adopted rules increasing the number of prelicensing education hours required for mortgage loan originators prior to licensing. The addition of two hours brings the total number of hours specific to Washington law to four.
Quarter 4 Mortgage Call Report (MCR) Deadline is February 14
The filing deadline for the Quarter 4 MCR is Thursday, February 14. The Q4 MCR reports business from October 1- December 31 of 2012. All Mortgage Broker and Consumer Loan Companies must file the MCR. Companies who fail to file or file late may face enforcement action.
New SAFE MLO Test with Uniform State Component to Start April 1
The Conference of State Bank Supervisors (CSBS) has announced that a new National SAFE MLO Test with a uniform state component will be available on April 1, 2013. With the implementation of this new test, Washington will no longer require a second, state-specific test component to be taken by mortgage loan originators (MLOs) seeking licensure.
State Regulators Support Integrated RESPA and TILA Disclosures
The Conference of State Bank Supervisors (CSBS) support efforts by the Consumer Financial Protection Bureau (CFPB, or the Bureau) to integrate mortgage disclosures. The revised disclosures are geared toward addressing the discrepancies between the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), for which lenders, consumers, and regulators have long-pursued reconciliation.
Fall 2012 Newsletter
The Division of Consumer Services Fall 2012 newsletter is now available.
FinCEN's AML Program Requirement
FinCEN requires non-depository residential mortgage lenders and originators (“RMLO”) to establish an anti-money laundering program (“AML Program”) and file suspicious activity reports (“SARs”). The guidelines relating to the AML Program requirement became effective on April 16, 2012, and the AML Program’s effective compliance date is August 13, 2012.
Rulemaking Update - Rules Adopted - Effective November 01, 2012
DFI has adopted rules under the Mortgage Broker Practices Act to protect consumers from financial harm, to aid the regulated industries by having consistent rules within the mortgage marketplace, and to make technical changes for clarity and consistency.
- Spring 2012 Newsletter
DFI's Division of Consumer Services' Spring 2012 newsletter is now available.
Good Faith Estimate Webinar PowerPoint
Below is the PowerPoint from the April 18 Good Faith Estimate webinar.
- Changes to Filing Mortgage Broker Annual Report
In an effort to eliminate duplicate filings, DFI will accept fourth quarter Mortgage Call Report data in lieu of the 2011 Mortgage Broker Annual Report. The Q4 filing deadline is quickly approaching. The deadline to file is February 14, 2012.
- 3rd Quarter Mortgage Call Report Due November 14, 2011
The deadline for all Mortgage Broker and Consumer Loan Companies to file is Monday, November 14th. Companies who fail to file the 3rd quarter or any prior required Mortgage Call Reports will not be allowed to renew for 2012 and may face enforcement action.
- Deb Bortner’s Presentation to Seattle Mortgage Bankers Association - April 26, 2011
Deb Bortner, DFI's Director of Consumer Services, spoke to the Seattle Mortgage Bankers Association on April 26, 2011 about the SAFE Act relating to loan officer compensation, the mortgage call report, current licensing numbers, and more. View her presentation via the link below.
- Red Flags Rule Effective December 31, 2010
The Federal Trade Commission (FTC) issued the Red Flags regulations under the Fair and Accurate Credit Transition Act of 2003, which requires the establishment of guidelines for financial institutions and creditors regarding identity theft. The FTC’s definition of a creditor in the Act was amended on December 8, 2010. The FTC delayed implementation of the rule multiple times to allow for Congressional clarification of this issue. If you have a question about the rule, the FTC has set up a toll free number at 1-877-FTC-HELP (1-877-382-4357)(tty 1-866-653-4261).
- Short Sale Guidance
Guidance to licensees providing services in short sale transactions from DFI and the Washington Department of Licensing.
- New Mortgage Rules Adopted October 5, 2010 - Effective
November 5, 2010
DFI has adopted rules from the 2010 rulemaking to implement changes to the law.
- Loan Modification Bill - Effective July 1, 2010
The Mortgage Broker Practices Act, chapter 19.146 RCW, was amended by House Bill 2608. The new law becomes effective July 1, 2010. Among other things, the amendments clarify requirements for loan modification service providers. DFI anticipates rulemaking on the new law.
- Criminal Background Check through the NMLS for all new MLO applicants
Effective January 25, 2010, all new MLO applications will require fingerprints to be on file with NMLS and request a federal criminal background check to be processed through NMLS. DFI will not issue a license until results from the federal criminal background check have been received.
- 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.
- Loan Originators Working For
CUSOs Can License Via The NMLS
Residential mortgage loan originators working for Credit Union Service Organizations (CUSOs) can obtain a license via the NMLS. To sponsor their loan originators, CUSOs must register as exempt mortgage brokers on the NMLS. Please see DCU Bulletin B-09-01 for additional information about this federal licensing requirement.
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