Rulemaking

DFI has begun a narrowly focused rulemaking to make technical changes to the renewal requirements for mortgage loan originators under the Mortgage Broker Practices Act, chapter 208-660 WAC.

The rules for renewal must be amended to be consistent with the federal SAFE Act renewal requirements. Renewal candidates must continue to meet the same standards for licensing renewal as those required at the initial licensing.

Initial rulemaking document: CR-101 (PDF)

Access the rulemaking webpage: http://dfi.wa.gov/cs/current_rulemaking.htm
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Mortgage Update

Licensing Updates

Number of licenses:

License Types	Count as of July 1, 2011	Count as of July 1, 2010
Mortgage Broker – Main Offices	406	589
Mortgage Broker- Branch Offices	181	623
Consumer Loan- Main Offices	363	364
Consumer Loan- Branch Offices	1,055	1,144
MLOs- Active & Inactive	7,385	6,029

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Renewals- Are You Ready?

The time to renew your license seems far away but there are steps you can and should do now to help ensure a smooth renewal. Summer is the ideal time to take your continuing education courses. Currently, 13% of MLOs nationwide have finished the required continuing education.

Here are a few potential pitfalls to avoid when taking your continuing education:

• Take only NMLS approved courses.
• Take courses early. You will not be able to renew until your education is posted on the NMLS. Course providers have up to 7 days to report education, so if you complete courses at the very end of the year you will likely have a late renewal.
• Ensure you take Continuing Education not Pre-Licensing Education or LATE Continuing Education courses. These will not count for renewals.
• Do not take the same course again. There are tips on the NMLS to prevent this:
  
  http://mortgage.nationwidelicensingsystem.org/profreq/education/
  mcc/Pages/CECourses.aspx
• Most individuals will take either of the combinations below:
  • 2 courses- one which is an 8 hour SAFE CE Comprehensive course and a second course which is a 1 hour WA CE Course, or
  • 1 course- a 9 hour SAFE WA SAFE Comprehensive which covers the SAFE core courses and the 1 hour WA requirement

What is the continuing education requirement for Washington?
All MLOs and Designated Brokers must complete 9 hours of NMLS approved continuing education, including 1 hour in WA law.

Where can I find a list of approved courses?
The NMLS Resource Center has a master course catalog. You can access the catalog at:

http://mortgage.nationwidelicensingsystem.org/profreq/education/
mcc/Pages/CECourses.aspx

How do I register for a course and how much do they cost?
The course catalog has contact information for each course provider. You will need to contact the provider directly and must have your NMLS number. The price of each course is set by the provider.

Is every MLO required to take continuing education in order to renew?
No. Those MLOs who show a pre-licensing education completion year of 2011 do not need to complete continuing education to renew at the end of the year. This is because they already completed 20 hours of education this calendar year. Any licensee can view their PE completion year through Composite View when logged into the NMLS.

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NMLS System Changes- Coming August 1st

As of August 1, the NMLS will be upgrading the system. Several of the changes could impact your licensing filings or those of your MLOs:

• Credit Reports for Control People- If your company adds any new owner or Executive Officer after the upgrade, that individual must authorize a credit report through the NMLS. Additionally, any new company applications will require that all owners and officers authorize a credit report through the NMLS.
• New MLO Applications- As of August 1, new MLO applications cannot be submitted until pre-licensing education and both tests are posted to the individual’s NMLS record.

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Did You Know?

The NMLS is a real-time system. This means if you change your name today, the change shows on the NMLS today and regulators will start processing the change today. This does NOT mean that you are authorized to conduct business with the change.  You must first receive an updated licensed from us.  Companies can email DCS@dfi.wa.gov to give us pre-notification of significant changes like adding an officer or a main office address change.

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Examinations Update - Mortgage Call Report
MCR- Quarter 2 due Aug 15th

Now that June is over, it’s time for all Mortgage Broker and Consumer Loan licensees to start filing the 2nd quarter Mortgage Call Report. The RMLA component (loan activity data) of the MCR must be filed within 45 days of each quarter end. To assist licensees, the NMLS conducts Mortgage Call Report Workshops. Follow this link for details: http://mortgage.nationwidelicensingsystem.org/news/events/
Pages/MCRWorkshop.aspx

Here are a few reminders about the MCR:

• The MCR must be filed, even if the company did no business or does only non-mortgage related business.
• As of July 1, 2011, 32 Consumer Loan and 66 Mortgage Broker licensees failed to file the 1st Quarter MCR. A deficiency is listed in the NMLS for those who failed to file.
• If your company’s fiscal year end is during the spring or summer, you have 90 days from the end of your fiscal year to file the Financial Conditions component of the MCR.

Here are important dates for filing the MCR:

	Date Quarter Ends	Date MCR Due
1st Quarter	March 31	May 15
2nd Quarter	June 30	Aug 15
3rd Quarter	Sept 30	Nov 15
4th Quarter	Dec 31	Feb 15

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Enforcement Updates

See 2011 Enforcement Actions under MBPA & CLA at http://dfi.wa.gov/cs/adminactions_2011.htm