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.
Each employee who negotiates loan terms or conditions with the borrower or the borrower’s representative must obtain an MLO license. Call center employees who only provide information to borrowers or who gather data from borrowers for other employees do not need a license but must not negotiate the terms or conditions of mortgage loans with borrowers. Employees performing purely administrative or clerical tasks also do not need a license.
This interpretation of Washington law supersedes the prior information provided in the Spring newsletter and applies regardless of a federal licensing determination under the SAFE Act as expressed in any final rules.
If you have questions about which of your decision-making employees must have the MLO license, please contact Cindy Fazio at DFI for assistance. (360) 902-8800 or email@example.com.
For information on how to apply for an MLO license, please visit DFI’s website at http://dfi.wa.gov/cs/loan-originator-apply-license.htm.
Mortgage Loan Originators
Consumer Loan Companies