Current Mortgage Broker Licensees Converting To The Consumer Loan License
Beginning January 1, 2010, non-delegated correspondent lenders licensed under the Mortgage Broker Practices Act (MBPA) must hold a Consumer Loan Act (CLA) license in order to make residential mortgage loans. To avoid potential business interruption and ensure timely licensure, DFI recommends that all MBPA licensees wishing to make residential mortgage loans apply for a CLA license no later than October 31, 2009.
How To Apply For A Consumer Loan Company License
- Log into your NMLS account
- Go to the “Filings” tab and click on the “Company” link
- Click on “Create a New Filing” which brings up your already completed MU1
- On the License & Registration page, click on the “Add” button
- Select Washington and Consumer Loan License, bypass the license number screen and click Finish
- Verify the remaining information on your MU1 is still correct
- Get all control people listed in the Direct Owners & Executive Officer section to attest to their MU2
- Click on the Completeness Check & Submit to attest and submit the application, paying applicable licensing fees
- Mail the required Washington Jurisdiction-Specific Requirements (PDF)* to DFI
Frequently Asked Questions
Do I need to surrender my Mortgage Broker license in order to apply for a Consumer Loan license?
No. You want to first apply for and get your Consumer Loan license approved before taking any action to surrender your Mortgage Broker license. If you surrender the Mortgage Broker license before the Consumer Loan License is issued, your company will be unlicensed to do business in Washington and you will incur fees to re-sponsor all your loan originators.
How do I license my branch office locations under the CLA?
Follow the steps above using your already filed MU3’s for each branch office location and ensure your surety bond lists both the main office location and each branch office location on it. You can submit your MU1 and MU3’s at the same time so they are processed together.
Do I have to do anything to move my licensed loan originators to my CLA license once it is issued?
No. If your licensed loan originators are already sponsored by you in the NMLS, then you do not need to do anything. The sponsorship carries over to your CLA license once it is issued.
Can I submit my CLA application if I haven’t secured the surety bond?
Yes. DFI strongly encourages MBPA licensees who must obtain a CLA license to apply for that license by October 31, 2009 in order to avoid potential business interruption. If you cannot or have not obtained the surety bond, you can submit all the other required documents to DFI and provide the surety bond prior to January 1, 2010.
Once I obtain my CLA license, can I allow my MBPA license to expire?
Yes, but you will be required to provide DFI with a completed 2009 Mortgage Broker Annual Report by March 31, 2010.
If I both broker and lend do I need to maintain both my Mortgage Broker and Consumer Loan license?
No. The Consumer Loan Act allows for both brokering and lending. You can, however, elect to maintain both licenses.
Contact Us
If you have any questions please feel free to contact us by phone at 360-902-8703 or toll free at 1-877 RING DFI (746-4334). You may also email us at dcs@dfi.wa.gov.
* This document is a PDF file, and you will need Adobe Acrobat Reader to view it. If you don't already have Acrobat Reader installed on your computer, you may download it for free from Adobe.
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