Consumer Loan Company News
Below you will find Consumer Loan Company news and updates from the Division of Consumer Services.
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News and Updates
Windows XP Upgrade Warning
On April 8, 2014, Windows XP will reach the end of its support lifecycle and will no longer be supported. After April 8, 2014, Washington State Department of Financial Institutions (DFI) will consider all devices connected to the Internet running Windows XP a serious security risk. Devices include: PCs, Laptops, and Tablet PCs.
Online Consumer Loan Annual Assessment System Now Available
The electronic system for filing your 2013 Consumer Loan Annual Assessment Reports is now available. Annual assessment reports are due to DFI on March 3, 2014.
Clarification on the Manager Licensing Rule
It has come to our attention that clarification is needed on the Manager Licensing Rule of WAC 208-620-301
Winter 2014 Newsletter
The Division of Consumer Services Winter 2014 newsletter is now available.
Residential Seller Financing Disclosure Forms
Disclosure forms for residential seller financing is now available from DFI.
Consumer Loan Act Rules Adopted
DFI has adopted amended rules to implement the Consumer Loan Act, chapter 31.04 RCW, as amended by chapters 29 and 64, Laws of 2013, and to generally amend the rules for clarity and consistency. The rules become effective January 1, 2014.
Summer 2013 Newsletter
The Division of Consumer Services Summer 2013 newsletter is now available.
Q2 Mortgage Call Reports Due August 14
The filing deadline for the Q2 MCR is Wednesday, August 14. The Q2 MCR reports business from April 1-June 30 of 2013. All Mortgage Broker and Consumer Loan Companies must file the MCR. Companies who fail to file or file late may face enforcement action.
The Mortgage Call Report is filed through the NMLS. A Quick Guide is available for each filing type.
Standard MCR Quick Guide (PDF)* | Expanded MCR Quick Guide (PDF)*
If you have additional questions, visit the Mortgage Call Report webpage or call the NMLS Call Center at (240) 386-4444.
- Spring 2013 Newsletter
The Division of Consumer Services Spring 2013 newsletter is now available.
- Winter 2013 Newsletter
The Division of Consumer Services Winter 2013 newsletter is now available.
- New Resources: Quick Guide to Consumer Loan Act and Rules
We have published two new guides to help industry navigate the Consumer Loan Act and rules.
- Quarter 4 Mortgage Call Report (MCR) Deadline is February 14
The filing deadline for the Quarter 4 MCR is Thursday, February 14. The Q4 MCR reports business from October 1- December 31 of 2012. All Mortgage Broker and Consumer Loan Companies must file the MCR. Companies who fail to file or file late may face enforcement action.
- New SAFE MLO Test with Uniform State Component to Start April 1
The Conference of State Bank Supervisors (CSBS) has announced that a new National SAFE MLO Test with a uniform state component will be available on April 1, 2013. With the implementation of this new test, Washington will no longer require a second, state-specific test component to be taken by mortgage loan originators (MLOs) seeking licensure.
- Fall 2012 Newsletter
The Division of Consumer Services Fall 2012 newsletter is now available.
- FinCEN's AML Program Requirement
FinCEN requires non-depository residential mortgage lenders and originators (“RMLO”) to establish an anti-money laundering program (“AML Program”) and file suspicious activity reports (“SARs”). The guidelines relating to the AML Program requirement became effective on April 16, 2012, and the AML Program’s effective compliance date is August 13, 2012.
- Rulemaking Update - Rules Effective November 01, 2012
DFI has adopted rules under the Consumer Loan Act to protect consumers from financial harm, to aid the regulated industries by having consistent rules within the mortgage marketplace, and to make technical changes for clarity and consistency.
- Spring 2012 Newsletter
DFI's Division of Consumer Services' Spring 2012 newsletter is now available.
- Good Faith Estimate Webinar
Below is the webinar recording and PowerPoint from the April 18, 2012 Good Faith Estimate webinar.
- Washington Foreclosure Fairness Act May Apply To You
The Foreclosure Mediation Program was created during the 2011 legislative session to provide homeowner foreclosure assistance. State law now requires lenders to notify borrowers prior to foreclosure of the availability of foreclosure prevention counseling and the potential for mediation. All lenders or beneficiaries are covered by the mediation requirement, except financial institutions that have conducted less than 250 foreclosure sales annually. The Department of Commerce implements the law and has the required notices and disclosures available on their website. DFI will examine licensees for compliance with the new law.
- Announcement: Certain Employees Working For Loan Servicing Companies Must Be Licensed By October 1, 2011
Because of the continued high volume of struggling homeowners, loan servicers are encouraged to continue to modify residential mortgage loans when possible. The Consumer Loan Act, however, requires certain individuals employed by loan servicers to have a mortgage loan originator (MLO) license.
- FAQs Regarding the Licensing of Depository Institution Subsidiaries and their Employees
Answers to frequently asked questions regarding the licensing of depository institution subsidiaries and their employees.
- Mortgage Call Reports
Starting May 02, 2011, companies can log into the NMLS and file their Mortgage Call Report. This report is required to be filed quarterly by the SAFE Act. The deadline for the First Quarter of 2011 is May 15, 2011.
- Deb Bortner’s Presentation to Seattle Mortgage Bankers Association - April 26, 2011
Deb Bortner, DFI's Director of Consumer Services, spoke to the Seattle Mortgage Bankers Association on April 26, 2011 about the SAFE Act relating to loan officer compensation, the mortgage call report, current licensing numbers, and more. View her presentation via the link below.
- Red Flags Rule Effective December 31, 2010
The Federal Trade Commission (FTC) issued the Red Flags regulations under the Fair and Accurate Credit Transition Act of 2003, which requires the establishment of guidelines for financial institutions and creditors regarding identity theft. The FTC’s definition of a creditor in the Act was amended on December 8, 2010. The FTC delayed implementation of the rule multiple times to allow for Congressional clarification of this issue. If you have a question about the rule, the FTC has set up a toll free number at 1-877-FTC-HELP (1-877-382-4357)(tty 1-866-653-4261).
- Short Sale Guidance
Guidance to licensees providing services in short sale transactions from DFI and the Washington Department of Licensing.
- Interpretive Letter Regarding Exemption from Licensing for Certain Activities
The Department of Financial Institutions answers two questions regarding exemption from licensing under the Consumer Loan Act. 1) Am I exempt from licensing under the CLA if I lend money to an immediate family member? 2) Am I exempt from licensing under the CLA if I sell my home and carry the financing for the buyer?
- Emergency Proposed Rule Is Still In Effect
DFI has filed another emergency rule (PDF)* for WAC 208-620-515 pending completion of the rulemaking process. This draft has changed. Access the CR-103E (PDF)* for important information about the emergency rule process. If you have any questions about this emergency rulemaking, contact Cindy Fazio, (360) 902-8800 or Lucinda.Fazio@dfi.wa.gov.
- Loan Servicing Bill - Effective July 1, 2010
The Consumer Loan Act, chapter 31.04 RCW, was amended by House Bill 2608. The new law becomes effective July 1, 2010. Among other things, the amendments require licensure and annual assessment for the activity of servicing a residential mortgage loan. The amendments also clarify requirements for loan modification service providers. DFI anticipates rulemaking on the new law.
- Criminal Background Check Through The NMLS For All New MLO Applicants
Effective January 25, 2010, all new MLO applications will require fingerprints to be on file with NMLS and request a federal criminal background check to be processed through NMLS. DFI will not issue a license until results from the federal criminal background check have been received.
- Licensing Required as of July 1, 2010 for all CLA Mortgage Loan Originators
On April 20, 2009, Governor Gregoire signed SHB 1621, a bill that will require significant regulatory changes for consumer loan companies and their mortgage loan originators. As of July 1, 2010, all mortgage loan originators working for consumer loan act (CLA) companies must be licensed by DFI.
- Consumer Loan Companies Making Reverse Mortgages
EHB 1311 (PDF)* regulating reverse mortgages became effective July 26, 2009. While the department is conducting rulemaking on the provisions that create an approval process for proprietary reverse mortgage products, all provisions of the bill are now effective including the provisions, sections 12 and 13 that allow consumer loan companies to make HECMs.
If you have any questions, contact Cindy Fazio at 360-902-8800
- Loan Modifications - License Required
Companies and individuals providing loan modification services in Washington must be licensed as mortgage brokers, consumer loan companies, or loan originators.
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