What's New from Consumer Services
Below you will find what's new from the Division of Consumer Services.
Receive updates via email: Consumer Services ListServs.
Mortgage Broker Practices Act Rulemaking - WAC 208-660-550 (Department Fees And Costs)
On April 23, 2008, DFI filed a CR-105 (PDF)* notice of expedited rulemaking to amend the fees section in the MBPA that was inconsistent with I-960. The rule amendments (PDF)* was published in the Washington State Register May 7, 2008, and if no objection is made, will become effective July 25, 2008.
Consumer Loan Company Licenses Now Managed Through The NMLS
DFI is now using the Nationwide Mortgage Licensing System (NMLS) for all Consumer Loan Licenses. The NMLS was developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.
All companies holding Consumer Loan Company Licenses in Washington have until September 1, 2008 to transition onto the NMLS.
Links:
New Licensing Requirements For Washington State Lenders
Lenders, your business practices may be affected by new laws passed during the 2008 Washington legislative session. View the letter (PDF)* sent out by Deb Bortner, Director of Consumer Services, explaining the new laws and requirements.
Mortgage Broker Practices Act Legislative Update
Three pieces of legislation passed during the recent session amend the Mortgage Broker Practices Act, chapter 19.146. RCW.
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SHB 2770 (PDF)* – the Governor’s Omnibus legislation implementing the recommendations of the Homeownership Task Force. This legislation impacts Banks, Credit Unions, the Consumer Loan Act (CLA), and the MBPA. The bill addresses prepayment penalties, negative amortization loans, the federal guidance on nontraditional mortgage products and subprime lending, and makes mortgage fraud a class B felony.
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SB 6471 (PDF)* – This legislation amends the CLA and MBPA. All lenders, except those making loans under chapter 63.14 RCW, must have a license under the Consumer Loan Act. Lending is no longer allowed under the MBPA.
- SB 6381 (PDF)* (Pending Governor Signature) – This legislation amends the MBPA by imposing a fiduciary duty relationship between mortgage brokers and borrowers.
DFI will begin rulemaking this spring to implement the changes.
Consumer Loan Act Legislative Update
Two pieces of legislation passed during the recent session amend the Consumer Loan Act, chapter 31.04 RCW.
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SHB 2770 (PDF)* – the Governor’s Omnibus legislation implementing the recommendations of the Homeownership Task Force. This legislation impacts Banks, Credit Unions, the Consumer Loan Act (CLA), and the MBPA. The bill addresses prepayment penalties, negative amortization loans, the federal guidance on nontraditional mortgage products and subprime lending, and makes mortgage fraud a class B felony.
- SB 6471 (PDF)* – This legislation amends the CLA and MBPA. All lenders, except those making loans under chapter 63.14 RCW, must have a license under the Consumer Loan Act. Lending is no longer allowed under the MBPA.
DFI will begin rulemaking this spring to implement the changes.
* 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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