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Mortgage Industry Update

Licensing Updates

Number of licenses:

License Types	Count as of January, 2012	Count as of March, 2011
Mortgage Broker Main Office	351	417
Mortgage Broker Branch Office	146	165
Consumer Loan Main Office	417	372
Consumer Loan Branch Office	1,160	1,103
MLOs Active & Inactive	6,604	6,490

* March 1, 2011 used as best comparative number

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Late Renewal Period Ending

If you held a license in 2011 and want to renew that license, the time to act is now. The reinstatement or late renewal period ends on February 29, 2012.

Should you not complete a late renewal by February 29, you must reapply for the license if you wish to operate in Washington again.

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Celebrating Renewal Success

We want to take a moment to pass along a big "Thank You” to everyone who made this year’s renewal process a success.

More than 700 companies and nearly 6,200 MLOs completed the steps necessary to renew prior to their license expiration. Less than 5% of renewals submitted had a deficiency associated with the renewal. These are amazing statistics!

It is our belief that the following factors contributed to the success:

• Companies - Thank you for sponsoring education for all sponsored MLOs. In at least one case, a company’s MLOs were all finished with education in February, 10 months early.
• Licensees - Thank you for reading renewal information and planning ahead. The majority of all renewals processed were done before Washington’s December 15 deadline.

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Tips for Success

Did you know?

• Virtually all MLO and branch applications as well as amendments for all license types are done electronically via fax or email. It is critical that when communicating with DFI, you list the licensee or applicant name and NMLS number in the subject line of the email.
• Any information we need to pass along to a licensee is done via license items on the NMLS or email. When you are in the NMLS, please review for accuracy the email address listed on your MU form. A good number of MLOs, when moving companies, fail to update their email address and never receive their updated license.
• The Employment History section of a MLO’s MU4 is visible to the public in NMLS Consumer Access. MLOs should be diligent about updating this part of the MU4 as employment changes. Entries can be made for periods of unemployment, education or non-financial related employment. Company’s brining on MLOs should also review the individual’s employment history to ensure it is updated prior to sponsoring the MLO.

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Examination Update

Q4 MCR Filing Deadline Approaches
Tuesday, February 14 is the deadline for all Mortgage Broker and Consumer Loan licensees to file the Q4 Mortgage Call Report (MCR). This filing is either part of or will be accepted in lieu of your annual reporting requirements, depending on your license type. Reporting requirements for each license type are listed below. Licensees are also reminded that the Financial Conditions (FC) component of the MCR is due 90 days after your company’s fiscal year end.

Mortgage Broker Licensees
In an effort to eliminate duplicate filings DFI will accept fourth quarter Mortgage Call Report (MCR) data in lieu of the Mortgage Broker Annual Report (MBAR). The MBAR was the one page form which licensees filed with DFI by March 31 of each year, reporting loan volume for the prior year. The rules implementing this requirement found at WAC 208-660-400(1) will be amended to reflect this change.

You must still file all quarterly MCRs through the NMLS. The Q4 filing deadline is quickly approaching. The deadline to file is February 14. While 2011 was a transition year for the MCR filings, DFI expects licenses to file each quarterly report on or before the deadline.

Consumer Loan Licensees
There is a change this year for Consumer Loan licensees filing the Consumer Loan Annual Reports. In addition to filing the Annual Assessment Report (AAR) and the Consolidated Annual Report (CAR), Consumer Loan licensees must also file their Q4 Mortgage Call Report (MCR) through the NMLS. DFI continues to work with the NMLS to eliminate these duplicate filings, but for now both separate reports must be filed by:

• February 14: Q4 MCR filing deadline
• March 1: 2011 AAR and CAR filing deadline

As you start to complete the AAR and CAR, DFI staff put together a step by step video to help you complete the forms correctly. You can access the video at: http://youtu.be/E8Yxio9dVi0