Mortgage Industry Update

Licensing Updates

License Types As of October 2019 As of October 2018
Mortgage Broker Main Office 313 296
Mortgage Broker Branch Office 245 200
Consumer Loan Main Office 714 669
Consumer Loan Branch Office 2,627 2,554
MLOs - Active* 15,188 15,147
MLOs - Inactive* 2,752 4,151

Preparing for Renewals

In less than two weeks, the annual renewal period opens. Taking steps now ensures you are ready to renew in November. This is important because statistics show that renewal requests submitted in November have the highest chance of approval prior to the end of the year.

Here are items of note for this year’s renewal:

  • MLO licensees are not required to authorize a criminal background check or credit report
  • A temporary fee reduction will reduce the MLO renewal fee from $155 to $75
  • The Department is utilizing auto-renewal functionality for MLO renewals; if the MLO has no license items or outstanding issues the renewal will automatically process rather than be subject to manual review

Below are steps to complete now so you are ready to renew:

Company Licenses

  • Ensure all Mortgage Call Report (MCR) filings are current and if you are able to, file your Q3 report now. Standard MCR filers must also be current on the annual Financial Conditions.
  • Clear all outstanding license items.
  • Review company and branch records for accuracy as the renewal attestation is a legal certification as to record accuracy.
  • Finish the Designed Broker’s continuing education, which is 9 hours of NMLS, approved education, including 1 hour in Washington law – Mortgage Broker Licensees Only.

Mortgage Loan Originators (MLO)

  • Clear all outstanding license items; license items will delay renewal processing
  • Make any updates to your NMLS record now; changes filed after November 1 will delay renewal processing
  • Finish Continuing Education, which is 9 hours of NMLS, approved education, including 1 hour in Washington law.

More information about renewals, including fees, deadlines and Frequently Asked Questions, is available at the DFI website and the NMLS Resource Center.

Closing Your Company or Branch License – Take Proper Steps

The end of the year always brings a higher than usual amount of licensees not wanting to maintain their company or branch license(s). Properly closing the license requires more than marking “not renewing”:

Company License

  • Request surrender of your Washington license in NMLS, and
  • Provide a fully completed closure report to the Department within 5 days of surrendering.

Branch License

  • Request surrender of your Washington license in NMLS; nothing is needed outside of NMLS.

Temporary Authority to Operate for Certain MLOs

As of November 24, MLO applications from certain individuals may qualify for Temporary Authority to Operate (TA) while the individual is meeting state application requirements. TA is part of federal legislation, Sec. 106 of S.2155, which amended the federal SAFE Act.

To be eligible for TA, an individual must be

  • Employed through NMLS by a state-licensed mortgage company; and
  • Either be a Federal MLO registered in NMLS during the one year preceding the application or a licensed MLO in another state during the 30-days preceding the application

Additionally, individuals are not eligible for TA if they have

  • Had a MLO license application denied or a MLO license revoked or suspended;
  • Been subject to, or served with, a cease and desist order; or
  • Been convicted of a misdemeanor or felony that would preclude licensure under the law of the application state

The evaluation of TA eligibility happens on any MLO application submitted on or after November 24. An individual must have a relationship with a company before the individual is TA eligible. After application submission, if the individual is TA eligible, they must obtain both sponsorship and results of their CBC before the granting of TA.

To support TA, several new statuses will be added to NMLS:

  • Pending-Deficient (TA Eligible), pending CBC results or sponsorship
  • Pending-Deficient (TA), pending testing, education or license item completion
  • Pending-Review (TA), testing and education complete, no license items
  • Pre-Approved (TA), pending testing and education

As a note, the company employing a MLO with TA is subject to both the federal SAFE Act, and Washington State Law to the same extent as if the MLO was licensed.

For more information, visit Temporary Authority to Operate on the NMLS Resource Center.

Student Education Loan Servicer Update

With the passage of Senate Bill 6029 (chapter 62, Laws of 2018), student education loan servicers are required to license under the Consumer Loan Act. Currently 18 companies licensed as student loan servicers and 5 additional companies are pending licensure.

Mortgage Industry Webinar

Information for Mortgage Industry webinar held earlier this month, can be found on the Mortgage Industry Webinar.

Mortgage Broker Forum

Anya Tabb, Zach Zimmerman, Jacob Monson, and Cindy Fazio attended the twice yearly Mortgage Broker Forum on October 16 in Renton. This group is made up of licensees under the Mortgage Broker Practices Act. Topics discussed included the current rulemaking, potentially expanding the requirements for designated brokers, anti-steering, independent versus internal loan file auditing, and down payment assistance programs through the Washington State Housing Finance Commission.

The next Forum meeting is scheduled for April 14 at 10 A.M. at the Renton Community Center. If you have questions about the Mortgage Broker Forum, contact Jeff Lorsch at Evergreen State Mortgage:

206-200-LEND (5363) (cell)
425-867-1313 (office)

Upcoming Dates to Remember

November 1 Start of the Renewal Period
November 14 Q3 MCR Filing Deadline
December 15 Renewal Deadline (if want renewal reviewed before year end)
December 31 End of Renewal Period