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Consumer Loan Companies

Consumer loan companies doing business in Washington State must be licensed with DFI's Division of Consumer Services.

Quick Links for Consumer Loan Companies

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Upcoming Mortgage Broker and Consumer Loan Changes

Bonding Requirements Determined by Transaction Volumes

Effective
1/1/2010

Beginning January 1, 2010, the bond amounts required under the Mortgage Broker Practices Act (MBPA) and the Consumer Loan Act (CLA) will be determined by loan origination volume
Bonding levels based on loan origination volumes will be determined through the rule writing process
All new CLA and MBPA applications received after October 31, 2009 will require evidence of meeting these new bonding requirements

Mortgage Brokers Who Lend Must have A CLA License

Effective
1/1/2010

Beginning January 1, 2010, non-delegated correspondent lenders licensed under the MBPA must hold a 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
MBPA licensees that transition to the CLA in 2009 will not have to pay assessments or file their CLA annual reports for 2009
MBPA licensees transition to the CLA can elect not to renew their MBPA license for 2010
Brokering and table funding remain permissible under the MBPA

What's New

Licensing Requirements For CLA Mortgage Loan Originators
On April 20th, 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 the Department of Financial Institutions (DFI). Learn more.
Rulemaking For Laws Of 2009
DFI anticipates rulemaking on the laws of 2009. See the CR-101 (PDF)* for more information.
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. Upfront fees for services are prohibited. Learn more.
Reverse Mortgages
License holders under both the Consumer Loan Act (CLA) and Mortgage Broker Practices Act (MBPA) can broker reverse mortgages to entities exempt from the CLA (nationally chartered entities). The lending entity must be exempt from the CLA due to RCW 31.04.125, a provision in the CLA that prohibits the compounding of interest on loans secured by real estate. Examples of exempt entities are Washington chartered banks, credit unions, their affiliates or subsidiaries and nationally chartered banks, credit unions, or their affiliates or subsidiaries

Contact Cindy Fazio, 360-902-8800 if you have questions.
SHB 2770 Rulemaking - "Disclosure Summary"
Disclosure summary rules and model disclosure summary are now available online for review.

See: Disclosure Summary Rules & Model Disclosure Summary

Laws & Rules

Consumer Loan Law (RCW 31.04)
Consumer Loan Rules (WAC 208-620)
Usury Law (RCW 19.52)
MBPA & CLA FAQs

1 Page Disclosure Summary Forms And Instructions

Print Only PDF Versions of Disclosure Summary Forms

Microsoft Word Versions Of Disclosure Summary Forms

How To Use The 1 Page Disclosure Summary Forms

Disclosure Summary Forms Instructions (PDF)*

Resources

Contact Us

If you have any questions about consumer loan companies or obtaining a consumer loan license, 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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