Mortgage Industry Update

Licensing Updates

License Types	As of July 2020	As of July 2019
Mortgage Broker Main Office	324	308
Mortgage Broker Branch Office	217	233
Consumer Loan Main Office	728	692
Consumer Loan Branch Office	2,893	2,570
MLOs - Active	16,894	14,609
MLOs - Inactive	1,832	2,408

Preparing for Renewals

As we enter the second half of 2020, now is the time to start preparing for renewals. This year, perhaps more than ever, taking action early will ensure a smoother renewal in November. Here are some things to do now:

Complete the required continuing education (CE). All MLOs who need CE received a license item late in July. Companies can use this license item to track their MLOs’ education compliance. Nobody wants to spend the holidays completing CE at the last minute! To find CE courses, view the NMLS Master Course Catalog.
Resolve all outstanding license items on your NMLS record. License items are requests from regulators or the system to make required changes to your record and require prompt attention. Unresolved license items slow the processing of renewals and other requests. To check for license items, use the Individual License Status Quick Guide. If you believe a license item is resolved, email the person listed in the license item or MortgageLicensing@dfi.wa.gov

Temporary Partial Waiver/Reduction of Assessment Fees

In case you missed it, the Division of Consumer Services recently issued communication regarding the temporary waiver of a portion of MLO renewal fees. Specifically, temporary waiver reduces the MLO renewal fee from $155 to $75. This is a temporary fee reduction of $80 per MLO renewal.

This partial fee waiver/reduction is temporary, but the Division will continue to evaluate the possibility of additional fee waivers going forward.

Latest on Temporary Authority to Operate for MLOs

As July ends, so too does the first eight months of Temporary Authority to Operate for Mortgage Loan Originators (MLO). The federal law authorizing Temporary Authority took effect November 24, 2019. It allows certain eligible MLOs to continue operating as a MLO while their state license application is pending.

In Washington State, about 45% of applications qualify for Temporary Authority. To date, more than 1,600 MLOs had or currently have Temporary Authority. The Department issued licenses to nearly 1,200 of those MLOs.

Visit the Temporary Authority to Operate webpage to learn more about Temporary Authority.

Tips from the Licensing Unit

Our Licensing Unit wants to pass along some important information for those assisting MLOs in filing applications or maintaining their license. There is an increase in incorrect or misplaced information on MLO filings. Here are a few examples:

Inaccurate Employment History – When an MLO reapplies for licensure, be sure they report an accurate end date to the employer when they left MLO licensure. An increasing number of MLOs are putting a current date as the end date and then do not disclose employment during the time they were not MLO licensed. Sponsorship history is part of the MLO’s record in NMLS.
Misplaced Document Upload – Be careful when placing documents in the Individual Document Upload section. An increasing number of MLOs are putting things like criminal history or credit documents in the Legal Name section. Review the Document Upload Descriptions and Examples which outlines what type of documents should be uploaded and where.

Mortgage Broker Forum Updates

The Mortgage Broker Forum meeting for April was cancelled due to the COVID-19 virus. No new date has been set.

Upcoming Dates

August 14 - Q2 Mortgage Call Report Filing Deadline

FYI Financial News

Summer 2020