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Winter 2017 Newsletter
See enforcement actions taken by the Division of Consumer Services.
Message from Charlie Clark
Are you interested in learning more about cyber security and how to protect your small or medium sized business? Our agency has been following with interest the growing number of cyber security events over the years. It now seems an almost daily event to hear about a cyber hacking. While DFI does not provide training in this area directly, we are planning an event for our small and medium company licensees to receive free training provided by the National Cyber Security Alliance (NCSA).
Cyber Security Workshop for Small and Medium Businesses
DFI will be arranging for the National Cyber Security Alliance (NCSA) to provide a half-day Cyber Security Workshop for small and medium sized Washington businesses in a central location in the Seattle/Tacoma area. The NCSA has developed an introductory-level, in-person, highly-interactive workshop designed to provide business leaders with a pathway to better cyber security.
Expanding Use of Electronic Surety Bonds
The Department is expanding its use of Electronic Surety Bond (ESB) functionality in NMLS. Starting January 23, Consumer Loan applicants and licensees can utilize this functionality. The ESB functionality allows for issuing, signing, delivering and maintaining a bond electronically through NMLS. In addition to streamlining the process, the ESB eliminates mailing time involved in delivery of original bond documents.
Spotlight on Compliance - Common Origination Violations
This article discusses some of the more common violations that our Mortgage Broker and Consumer Loan exam teams found during their examinations in the last quarter.
Over-Insurance: Requesting That A Borrower Over-Insure Their Property Violates the Law
The Enforcement Unit has received information that some lenders, brokers, and mortgage loan originators (MLOs) are requiring consumers to increase their homeowner’s insurance to cover the entire mortgage amount rather than just the replacement cost of the improvements. While requiring an applicant to do so is prohibited, as the consumer might pay hundreds more in additional premiums for zero additional coverage, it is important that our licensees know that requesting that a consumer over-insure their property is a violation of the law.
DFI has adopted the proposed amendments to the rules on capital requirements for licensees under the Consumer Loan Act servicing residential mortgage loans.
The amended rules become effective January 1, 2018. This extended effective date will allow licensees time to plan for and implement the changes.