It’s hard to believe we are already more than one month into the new year. While 2025 brings excitement, anticipation, and opportunities, it is good to reflect on the year that ended. The Division of Consumer Services continues to be a leader in the non-depository space. Division staff work tirelessly to protect Washington consumers and provide fair regulation, while also leading collaboration efforts among state regulators.
Licensing
The goal of the Licensing Unit is to process applications timely while ensuring requirements are met and licensees are set up to operate compliantly. The mortgage industry accounts for the highest number of licensees, led by Mortgage Loan Originators (MLOs). Application volume rebounded in 2024 for MLOs. Licensing approved more than 4,100 MLOs in 2024, compared to 3,400 in 2023. Approvals for mortgage companies fell in 2024, but the Division still added more than 130 Consumer Loan licensees and 24 Mortgage Brokers.
Money transmitter applications continue to grow in complexity. Many recent applications are from large companies operating globally and trying to enter the US marketplace. Business models involving virtual currency are still common. The web of entities involved in the delivery of money transmission services is getting more complicated. Licensing approved nearly 20 Money Transmitter applications. On the flip side, the Escrow industry continues to shrink, adding only one new company licensee while a handful of others closed.
Current Licensee Numbers:
| License Type | 2025 | 2024 | Change |
|---|---|---|---|
| Check Casher | 82 | 85 | -3 |
| Consumer Loan | 1,061 | 1,008 | +53 |
| Escrow | 34 | 37 | -3 |
| Money Transmitter | 245 | 251 | -6 |
| Mortgage Broker | 354 | 363 | -9 |
| Mortgage Loan Originator | 19,063 | 17,981 | +1,082 |
Exams
This past year, the Consumer Loan Act Origination Team has continued to support the goals of networked supervision to reduce regulatory burden and enhance efficiencies. The team expanded and formalized procedures for accepting and leveraging examinations through the State Examination System, which allows us to accept the work of other states and limit our own review based on the risk of a licensee. Additionally, team members participated in numerous national level working groups to strengthen the state system. This included participating on groups to create national examination standards, enhance examiner education, and coordinate among states.
In the money transmitter examinations area, Washington continues to be active in networked supervision efforts within the state regulatory system. Washington participated on numerous multistate examinations during the 2024 calendar year, serving as the lead state on many of them. The majority of money transmission examination work is guided by the Money Transmitter Regulators Association (MTRA) joint examination work program organized into three main areas of review: management, compliance, and financial. Washington also remains active in many national working groups dedicated to effective state supervision.
Number of Exams Conducted in 2024:
- Check Casher: 11
- Escrow Agent: 12
- Money Transmitter: 52
- Mortgage Broker: 128
- Consumer Loan Origination: 243
- Mortgage Servicers: 60
- Student Loan Servicers: 3
Enforcement
The Enforcement Unit strives to lead the way in consumer protection. Looking at its 2024 accomplishments demonstrates great success in that effort. Enforcement achieves its results through analyzing complaints and taking formal enforcement actions. Both paths effectively protect and educate consumers and ensure regulated entities comply with our laws.
Consumers filed over 1,275 complaints in 2024. The unit closed over 1,125 complaints resulting in positive outcomes:
- More than $63,000 in restitution to consumers
- 12 foreclosures stopped or postponed
- 4 loan modifications granted
- 5 student loans forgiven
- 9 consumers receiving affirmative relief (such as waiver of outstanding loan balance, deferral of first right of refusal fee, and correction or removal of PMI)
The industries seeing an increase in the number of complaints are consumer loan servicing and money transmitters. The unit also saw a significant increase in complaints filed against tribal lenders. See the Department’s website for information about this topic. In addition, Enforcement took a proactive stance in investigating cases involving data breach incidents due to a substantial increase in those complaints.
Enforcement took more than 30 actions against companies and individuals determined to be in violation of the laws the unit enforces. When presented with urgent circumstances, the team took immediate actions in the form of Temporary Cease and Desist orders to stop illegal activities. The unit also successfully negotiated settlements in about 30 matters and brought others to final order. Here are the monetary aspects of these actions:
| Order Type | Payment Type | Sum of Amount Ordered | Sum of Amount Paid |
|---|---|---|---|
| Bond Claim | Bond Claim - Delinquent Annual Assessment | $81,500.00 | $3,000 |
| Bond Claim | Late Penalty | $750.00 | $750.00 |
| Bond Claim Total | $82,250.00 | $3,750 | |
| Consent Order/Agreement | Annual Assessment | $600.00 | $600.00 |
| Consent Order/Agreement | Confession of Judgment | $34,943.08 | - |
| Consent Order/Agreement | Financial Literacy and Education | $21,724.50 | $21,724.50 |
| Consent Order/Agreement | Fine | $409,123.70 | $376,846.14 |
| Consent Order/Agreement | Payment of Costs/Investigation Fees | $32,253.53 | $33,234.79 |
| Consent Order/Agreement | Restitution | $146,468.54 | $146,468.54 |
| Consent Order/Agreement Total | $645,113.35 | $578,873.97 | |
| Final Order | Cost of Prosecution | $66,470.17 | $27,598.38 |
| Final Order | Fine | $413,450.00 | $22,350.00 |
| Final Order | Payment of Costs/Investigation Fees | $37,245.73 | $1,782.42 |
| Final Order Total | $517,165.90 | $51,730.80 | |
| Grand Total | $1,244,529.25 | $634,347.54 |
For more information about enforcement actions, please visit Division of Consumer Services Enforcement Actions.