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Mortgage Industry Update

Licensing Updates

Number of licenses:

License Types	Count as of October 2012	Count as of October 2011
Mortgage Broker Main Office	372	394
Mortgage Broker Branch Office	167	180
Consumer Loan Main Office	433	411
Consumer Loan Branch Office	1,322	1,118
MLOs Active & Inactive	8,501	7,827

The Secrets to Renewal Success: Be Prepared and Renew Early

It’s time to renew your Washington license. The renewal period opened November 1 and Washington’s renewal deadline is December 14. Be aware that there are some changes to the renewal process.

Renewal Requirements

Company Licensees:

• Mortgage Call Report (MCR): File all required MCRs, including the quarterly RMLA and annual Financial Conditions for standard filers.
• License Items: Resolve all outstanding active license items on your record.
• NMLS Record: Review your NMLS record to ensure its accuracy. The attestation is a legal certification that everything is accurate.

Mortgage Broker Company Licensees Only:

• Designated Broker Education: Finish Designated Broker’s Continuing Education. Washington requires 9 hours of NMLS approved Continuing Education consisting of the 8 hour SAFE Core and an additional 1 hour in Washington law.
• Designated Broker Renewal: Renew your Designated Broker’s Registration at the same time you renew your company’s license.

Mortgage Loan Originators (MLO):

• Criminal Background Check (CBC) and Credit Report: Be prepared to authorize a CBC and Credit Report as part of your renewal request. Ensure you are familiar with your credit report and that your disclosure questions are accurate.
• License Items: Resolve all outstanding active license items on your record.
• NMLS Record: Review your NMLS record to ensure its accuracy. The attestation is a legal certification that everything is accurate.
• Continuing Education: Finish your Continuing Education. Washington requires 9 hours of NMLS approved Continuing Education consisting of the 8 hour SAFE Core and an additional 1 hour in Washington law.

Renewal Dates

November 01: Renewal period opens
December 14: Washington’s renewal deadline
December 31: Non-renewed licenses expire

Other Items to Note

• MLOs sponsored by a Mortgage Broker licensee will not be renewed until their sponsoring company and related location is renewed.
• Your renewal must be approved, not just requested, in order to work on or after January 1.
• Setting license items in NMLS is the primary way we will communicate renewal problems.
• When your renewal is approved, you will receive a NMLS notification. You will not receive a PDF license via email. (see article below)

Lastly, renew early! The benefits to taking action in November include allowing plenty of time for a review of your renewal and less stress during the final busy weeks of the year.

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DFI Ends PDF Licenses for MLOs

DFI plans to stop issuing PDF licenses for MLOs effective November 1. The move is an effort to streamline the license or amendment process and end duplicative work for both DFI and stakeholders. Individuals and sponsoring companies can access a MLO’s license and sponsorship status through the individual’s NMLS record. Additionally, MLOs and their sponsoring company already receive real-time NMLS notification for all license, sponsorship and renewal approvals.

Please pass this information to all lenders or any other third parties who rely on the PDF license to verify licensure. After November 1, MLOs can prove license status in one of two ways:

1. DFI’s Licensee Database
   • First approvals or renewal approvals usually take 1 business day to display
2. NMLS Consumer Access
   • To verify MLO license and/or sponsorship status, scroll to “State Licenses/Registrations” and click on “View Details” on the line showing the Washington license
     
   • To verify location(s) MLO is authorized to work at, please use DFI’s Licensee Database

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Mortgage Call Report Filing Deadline

The deadline for filing the Quarter 3 Mortgage Call Report (MCR) is November 14. At that time, all Consumer Loan and Mortgage Broker licensees must be current on all required MCR filings. Licensees are also reminded that the Financial Conditions (FC) component of the MCR is due 90 days after your company’s fiscal year end.

How do I know if I filed all prior required Mortgage Call Reports?
Check your NMLS record for Active License Items. The system set deficiencies for all missing MCR filings. A deficiency for failing to file the Q3 MCR will not be set until after the November 14 deadline.

How do companies file the Mortgage Call Report?
The Mortgage Call Report is filed through the NMLS. The Company User will log into the NMLS and complete the Mortgage Call Report under the Filing Tab. For more details, see the Mortgage Call Report information on the NMLS website.

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Examination Update

Good Faith Estimate - Line 3 "Important Dates"

DFI has again reviewed RESPA and the RESPA FAQs regarding interpretation of the GFE Important Dates Line 3. DFI has determined that the line only requires a number of days if the interest rate is locked. If the interest rate is not locked, the licensee must put “NA” in the space. When the interest rate is subsequently locked, the number of days for the lock period must be put in the space.

Leaving the space blank can cause confusion to borrowers. Both the Consumer Loan Act and the Mortgage Brokers Practices Act prohibit any action that may mislead or misrepresent loan terms or conditions to borrowers. In addition, the rules implementing the Consumer Loan Act prohibit the practice of leaving blank fields on documents.

References: RCW 31.04.027; RCW 19.146.0201; WAC 208-620-550(7)

Compliance Tips for Mortgage Licensees from “the Field”

Is your company’s home webpage in compliance with Washington state law? Remember, the more compliant your company is, the less often DFI may find it necessary to examine your company.

Common Website Violations

1. Fail to display NMLS Consumer Access link on the home or main page
   The home or main page of all company websites must contain a link to the NMLS Consumer Access website. The link must be identified as NMLS Consumer Access. This site informs prospective borrowers about your company like what license(s) you hold, when your business was founded, trade names you use, branch locations and how to file a complaint. Examiners find about half of licensees do not have this link and are citing violations against the company.
   
   Reference: WAC 208-620-622 (1)(c) & (3) and WAC 208-660-446 (1)(c)&(2)(b)
2. Fail to include required information with trade names/dba on websites
   Another issue that examiners often find is improper use of a trade name on the company’s website. If you want to use a dba on your company website, you must also use the main office license name. For Consumer Loan Licensees, the website must also include your license number. If you do not have a dba or are not using it, use the main office license name and your license number, to be in compliance.
   
   Reference: WAC 208-620-622 (3) and WAC 208-660-446 (2) (b)