I am wondering where is the mortgage business coming from? The number of mortgage loan originators has increased almost 25% since the first part of 2012, with an increase of just under 1,200 new agents since last November.
The deluge of applications is keeping our licensing staff very busy but thankfully they are still managing to process more than 80% of the applications in two weeks or less. Given these increases, we may end up with almost as many loan originators as we had in 2007. This certainly says something about the housing recovery.
Over the past year, the Consumer Services’ Enforcement Unit has closed 1,707 complaints, 240 of which cited violations of a specific statute. To assist our licensees in evaluating their own potential compliance issues, DFI's Enforcement Unit has provided a list of the most common violations cited against licensees in the complaint process.
DFI has received a number of telephone calls recently from real estate professionals with questions about private lending of residential mortgages under the Consumer Loan Act (CLA), chapter 31.04 RCW and chapter 208-620 WAC. We believe the questions arise from various sources of information based on changes in state and federal law. Those changes however do not affect the specific issue of private lending under CLA. Hopefully this article will clarify this matter.
Notifying DFI of future changes to your company’s license is about to get easier for NMLS users. As part of the June 24 release, NMLS will launch the Advance Change Notice functionality. This enhancement allows you to report certain changes with a future effective date through a filing in NMLS. The functionality is limited to companies and branches. This option is not available to individual MLOs.
Historically the examinations unit waited long periods of time between examining individual licensees. There were numerous instances where licensees continued to repeat actions identified as out of compliance in the Report of Examination. DFI had a need to verify that companies took corrective action, and licensees could continue to provide services to consumers without harm or misrepresentation.
The Supervisory Watch Examination is an additional and separate examination that is designed to verify if your company has taken the corrective action stated in your response to the Report.