What's New from Consumer Services
Below you will find what's new from the Division of Consumer Services.
Receive updates via email: Consumer Services ListServs.
Mortgage Broker and Loan Originator Licenses Now Managed Through The NMLS
DFI is now using the Nationwide Mortgage Licensing System (NMLS) for all Consumer Loan, Mortgage Broker, and Loan Originator Licenses. The NMLS was developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.
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Legislation Becomes Effective June 12
Mortgage Brokers and Consumer Loan Companies - SHB 2770, SB 6471, and SB 6381 all become effective June 12, 2008. Learn more about these bills.
Negative Amortization Loans
At this time, consumer loan companies licensed under chapter 31.04 RCW, cannot make negative amortization loans, including reverse mortgages. See RCW 31.04.015(7), and 31.04.125.
Contact Cindy Fazio, 360-902-8800 if you have questions.
SHB 2770 Rulemaking - "Disclosure Summary"
Disclosure summary rules draft and draft model disclosure summary are now available online for review.
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Consumer Loan Companies & Mortgage Brokers - FAQs Prior to Rulemaking on SB 6471
In order to assist individuals and entities affected by SB 6471 DFI has made pre-rulemaking interpretations. Any of the interpretations may change as a result of the rulemaking process. If you rely in good faith on these interpretations and the interpretations change as a result of the rulemaking process, DFI will not take action against you for your good faith compliance with these interpretations before the final rules are filed.
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New Licensing Requirements For Washington State Lenders
Lenders, your business practices may be affected by new laws passed during the 2008 Washington legislative session. View the letter (PDF)* sent out by Deb Bortner, Director of Consumer Services, explaining the new laws and requirements.
2008 Legislative Update
Three pieces of legislation passed during the recent session amend the Mortgage Broker Practices Act and Consumer Loan Act.
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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.
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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.
- SB 6381 (PDF)* – This legislation amends the MBPA by imposing a fiduciary duty relationship between mortgage brokers and borrowers.
* 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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