Message from Charlie Clark

Summer in the Pacific Northwest just cannot be beat. I hope you are enjoying the warm long days. We are staying busy and on July 16 began licensing Student Education Loan Servicers pursuant to E2SSB 6029, the Student Loan Bill of Rights. See our Student Education Loan Servicers webpage for the details.

In addition, there are two areas that I would like you to pay special attention to, rate lock disclosures and advertising.

Rate Lock Disclosures: In a rising interest rate environment, we want to remind our Mortgage Broker and Consumer Loan Act licensees of the importance of completing these rate lock disclosures. Complaints to DFI increase when interest rate locks expire and borrowers must face higher rates. By completing the interest rate lock disclosure and talking with the borrower about the terms and conditions of the locked interest rate, you will help your customer understand the disclosure and it can help protect your business if a borrower complains to DFI about having to pay a higher rate. In addition, please note, a common finding is failure to complete the guarantee section of the Washington rate lock disclosure. See WAC 208-660-430(3) and WAC 208-620-510(3).

Advertising: With rates on the rise, borrowers may be stepping back from purchasing or deciding the costs of a refinance no longer make sense. With fewer borrowers and smaller volumes of homes available, competition in the industry is brisk. Please take a few minutes and review the rules on advertising in WAC 208-660 for mortgage brokers and WAC 208-620 for consumer loan companies.