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Winter 2018 Newsletter
See enforcement actions taken by the Division of Consumer Services.
Message from Charlie Clark
We have completed another renewal period, and things went very well. Thank you to all of the mortgage loan originators (MLOs) who completed their education and who submitted renewal requests early.
Our license count in this area continues to grow, and more than 19,000 MLOs were eligible for renewal this year. This total represents an 8% increase over last year.
Implementation of Amended Rules under the Consumer Loan Act
for Residential Mortgage Loan Servicers
Amended rules under the Consumer Loan Act for residential mortgage loan servicers became effective January 1, 2018. Included in the rule amendments are net worth and liquidity requirements for residential mortgage loan servicers.
Changes to surety bond requirements are contained in Washington Administrative Code (WAC) 208-620-320. Applicants or licensees only servicing residential mortgage loans are not required to have a surety bond unless the company elects to provide one in lieu of meeting the tangible net worth requirements in WAC 208-620-322.
Escrow Committee Openings
The Department is currently seeking individuals to fill two openings on the Escrow Committee. You must be a licensee under RCW 18.44, the Escrow Agent Registration Act. Members of the escrow committee are appointed by the Department’s Director and meet quarterly via webinar to discuss industry issues.
Retention of Recorded Telephone Calls with Borrowers
As all licensees under the Consumer Loan Act (Act) should be aware, “[e]very licensee shall preserve the books, accounts, records, papers, documents, files, and other information relevant to a loan for at least three years after making the final entry on any loan.” As further described in WAC 208-620-520(1): “Each licensee must maintain electronic or hard copy books, accounts, records, papers, documents, files, and other information relevant to making loans or servicing residential mortgage loans.” The Department has consistently interpreted “electronic records” to include electronically recorded telephone calls with borrowers. To be compliant with the Act, then, electronically recorded telephone calls with borrowers must be retained for at least three years after the last entry on a loan.
Consumer Financial Education
Did you know DFI offers free financial resources and presentations to industry groups, community groups, and schools throughout Washington about a wide range of financial topics?
As part of our mission to “protect and educate the public and promote economic vitality,” we provide free, informative, and relevant resources and presentations to Washington residents from kindergarteners to retirees.
Uniform Money Services Act: DFI has filed a CR-101 to propose amendments to the rules. The rule amendment proposals will implement changes to the law and provide guidance to the industry.
Consumer Loan Act: DFI adopted the proposed amendments to the rules on capital requirements for licensees under the Consumer Loan Act servicing residential mortgage loans.