Resources and information on how to apply to offer a proprietary reverse mortgage product.
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Frequently Asked Questions
What is a proprietary reverse mortgage?
A proprietary reverse mortgage loan is any reverse mortgage loan product that is not a home equity conversion mortgage loan or other federally guaranteed or insured loan.
Do I need approval from the Department before offering or making proprietary reverse mortgages?
Yes. If you are the lender of a proprietary reverse mortgage you must seek approval from the Department prior to offering or making a proprietary reverse mortgage. See below for additional details on the approval process.
You do not need to seek approval from the Department prior to brokering proprietary reverse mortgage products. However, you must do your due diligence to determine if a product has been appropriately approved.
Do I need approval from the Department if I am a correspondent lender of a proprietary reverse mortgage previously approved by the Department?
Yes. See below for the steps you must follow to obtain approval to offer a product as a correspondent lender that has been previously approved by the Department.
What does the Department look at when reviewing a proprietary reverse mortgage product?
See Revised Code of Washington (RCW) 31.04.505 through 31.04.540 and Washington Administrative Code (WAC) 208-620-800 through 208-620-850.
How long will it take for the Department to approve my application?
The Department will typically complete an initial review of your submission within two weeks of receiving your application. If your submission meets the requirements of RCW 31.04 and WAC 208-620, the Department can typically approve the product after the initial review. If there are deficiencies in your initial application, the Department will reach out to request revisions or additional submission items. This will delay the approval of the product. Please provide all necessary information in your initial application packet to prevent approval delays.
What if I want to make a change to the product I am offering?
You must submit notice of any changes to the Department for review and approval.
Direct Lender Approval Process
- Review the requirements of the RCW 31.04.500 through 31.04.540 and the WAC 208-620-800 through 208-620-850.
- Gather all documents related to your proprietary reverse mortgage.
- Write a detailed cover letter that:
- Clearly describes at a high level each product for which you are applying.
- Clearly points out per WAC requirement each document (including page number) you are submitting to demonstrate compliance. If a certain WAC requirement doesn’t apply to you, state “N/A” with a description of why it is not applicable. You may also utilize the following Excel document
- Email the Department’s Consumer Services Exams Unit at: firstname.lastname@example.org to request a Box.com folder for your application packet submission. Please state your intention to apply in the email.
- The Department will review your completed submission and contact you with your approval confirmation. If not enough information is provided with your initial submission, the Department will reach out to request additional information.
Correspondent Lender Approval Process
- If you are acting as a correspondent lender on a product previously approved by the Department, complete the Declaration of Correspondent Lender Form.
- Email the Department’s Consumer Services Exams Unit at email@example.com your completed attestation form.
- The Department will review your completed declaration form and contact you once your approval confirmation.