We are preparing our legislative package for next year and meeting with stakeholders over the next few weeks to get feedback on our proposals.
It is likely that our package this year will focus on mortgage fraud which hasn’t diminished even though the market is smaller than it was during the height of the mortgage debacle. Our two prosecutors that specialize in mortgage fraud are busier than ever.
Effective January 1, 2014, the Department revised the rules for both the Mortgage Broker Practices Act and the Consumer Loan Act to allow variations in the way a Mortgage Loan Originator’s (MLO) name may appear on disclosures and in advertisements. MLOs must still use their name as it appears on their MLO license. However, the following exceptions are allowed: the use of your middle name is not required, you may use only your middle and last names, and you may use nicknames as your first name if it is listed in the “Other Names” section in NMLS.
Data recently released by HomeNow.com, an industry and non-profit partnership, shows that the number of delinquencies and foreclosure starts in Washington State is continuing to decline as the economy improves and Washingtonians enter repayment, modification, and refinance programs offered by the mortgage servicers.
However, homeowners in default or foreclosure are still the target of scammers. Especially dangerous are some recent scams where the delinquent borrower receives an advertisement that appears to be from their servicer.
The Department is examining more and more of what the industry has dubbed “mini-correspondent lenders” or “mini-mortgage bankers.”
See this article for more information about things mini-correspondent lenders should keep in mind.