Mortgage Brokers

Mortgage Brokers doing business in Washington State must be licensed with DFI's Division of Consumer Services. See below to learn more.

Quick Links for Mortgage Brokers

Licensing Information Loan Originator Licensing 2009 License Renewal Updated! Applications & Forms Licensing Test Continuing Education Annual Report

Examinations Commission Meetings Rulemaking Activity Laws & Rules ListServ Resources Newsletters

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What's New

• Late Mortgage Broker License Renewals - Opportunity To Reinstate License Expires February 28, 2009 New!
  In order to renew their license for 2009, Mortgage Brokers were required to transition onto the NMLS by the October 31, 2008 deadline. Mortgage Brokers that transitioned onto the NMLS late (between November 1, 2008, and December 31, 2008) will be able to use the NMLS renewal system, but cannot submit their renewal until their NMLS transition is approved and will incur a late charge.
  
  Since the NMLS transition period ended on December 31, 2008, any Mortgage Brokers that held a license in 2008 and failed to transition onto the NMLS before December 31, 2008, will be required to reapply in order to reinstate their expired license. Please note that the opportunity to reinstate any expired license ends on February 28, 2009.
  
  Renew Your License.
• Mortgage Broker Practices Act Amendments Adopted - Amendments Effective January 23, 2009
  On December 23, 2008, DFI filed the CR-103 (PDF)* and adopted amendments (PDF)*. The rules become effective January 23, 2009. Learn more about the rulemaking.
• Two Mortgage Broker Commission Openings
  DFI is now accepting applications for one Mortgage Broker and one Loan Originator to serve on the commission. Learn more.
• Designated Broker Test Study Guide Removed
  In order to begin preparing for the implementation of the federal SAFE act (H.R. 3221, or “HERA,” Public Law No. 110-289), DFI has removed the designated broker test questions and answers from the Web site on September 30, 2008. License applicants must then study for the test based on the continuing education topics as described in WAC 208-660-600(23). Eventually, the Nationwide Mortgage Licensing System (NMLS) will create a test based on the standards in the SAFE act.
  
  Taking this step will help ensure that any federal review of the test, and thereby the quality of education of newly licensed loan originators, meets the SAFE requirements.
• DFI Joins the Nationwide Mortgage Licensing System (NMLS)
  Effective July 1, 2008, DFI uses the NMLS to manage Mortgage Broker licenses. All initial applications and amendments must be submitted through the NMLS. Learn more about the NMLS.
• All Mortgage Broker Licenses Must Transition Onto The NMLS By October 1, 2008
  All companies holding Mortgage Broker licenses in Washington have until October 1, 2008 to transition onto the NMLS. View Mortgage Broker Transition Plan.
• SHB 2770 Rulemaking - "Disclosure Summary"
  Disclosure summary rules draft and draft model disclosure summary are now available online for review. Learn more.
• FAQs Prior to Rulemaking on SB 6471
  In order to assist individuals and entities affected by SB 6471 DFI has made pre-rulemaking interpretations. View FAQs.

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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.

1. 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.
   
   
2. 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.
   
   
3. SB 6381 (PDF)* – This legislation amends the MBPA by imposing a fiduciary duty relationship between mortgage brokers and borrowers.

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Laws & Rules

• Mortgage Broker Laws - (RCW 19.146)
• Mortgage Broker Rules - (WAC 208-660)
• Consumer Loan Laws - (RCW 31.04)
• Consumer Loan Rules - (WAC 208-620)

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Resources

• Mortgage Broker Interpretive Letters
• CSBS/AARMR/NACCA Statement on Subprime Mortgage Lending
• CSBS/AARMR Guidance on Nontraditional Mortgage Product Risks
• Guide to Interest Rates in Washington State
• DFI's Free Guide to Home Loans for Consumers

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Mortgage News and Information Newsletters

• Spring 2008
• Fall 2007
• Spring 2007 (PDF)*

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Keeping Data Secure

To protect non-public sensitive information from unauthorized access, the Department of Financial Institutions (DFI) does not send, receive, or request the transmission of unencrypted electronic non-public sensitive information. Learn more.

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Contact Us

If you have any questions about Mortgage Broker licensing, please feel free to contact us by phone at 360-902-8703 or toll free at 1-877 RING DFI (746-4334). You may also email us at dcs@dfi.wa.gov.

* 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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