Mortgage Broker Examinations

Examination information, frequently asked questions, and resources for Washington Mortgage Brokers.

Mortgage Broker Manager's Questionnaire

The Manager’s Questionnaire below is what DFI requires of licensee prior to an examination.

Information Security

Common Violations

Regulatory Guidance

Mortgage Broker Examination FAQs

Answers to common questions about examinations conducted by DFI.

Am I required to establish an Anti-money Laundering program?

Yes. As of August 16, 2012, financial institutions are required to establish anti-money laundering programs and report suspicious activities under the Bank Secrecy Act.

See: The Financial Crimes Enforcement Network, Department of the Treasury, 31 CFR Section 1029.210

Can I charge or collect Discount Points when I broker a Conventional or FHA loans?

No. The Mortgage Broker Practices Act (MBPA) prohibits the charging of discount points when it is payable to any party that is not the actual lender on the residential mortgage loan.

How long must I keep my books and records?

Accurate and current books and records shall be readily available to the Department at least three years following the effective period to which the books and records relate.

What are the characteristics of occupancy fraud?

Occupancy fraud typically involves two or more overlapping applications for separate owner-occupied properties. In addition, occupancy fraud may also include some of these other characteristics:

  • Both properties are within 50 miles of each other
  • Same loan originator for each transaction
  • Borrower’s income is different on each loan application
  • The same credit report is used for both loan applications
  • Different lenders for each transaction
  • Exclusion of the refinance loan amount and payment on the loan application for the purchase transaction
  • The refinance property is listed as a rental property on the loan application for the purchase transaction
  • Cash-out amount from the refinance transaction is used as the down payment for the purchase transaction
  • All loans close as owner-occupied

What will DFI do if it discovers occupancy fraud during an examination?

Evidence of occupancy fraud is referred to our Enforcement Unit for a possible enforcement action.

RCW 19.146.0201(1)
(1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person;

Contact Us

Examination And Compliance
Keith Schuster
(360) 725-7847
Maureen Camp
(360) 902-8752