Wash. Admin. Code § 208-660-005 - Purpose, scope and coverage
(1)
What is the purpose of the Mortgage
Broker Practices Act? The purpose of the Mortgage Broker Practices Act
is to establish a state system of licensure and rules of practice and conduct
for mortgage brokers and loan originators, to promote honesty and fair dealing
with citizens, and to preserve public confidence in the lending and real estate
community.
(2)
What is the
purpose of the Mortgage Broker Practices Act rules? The purpose of these
rules is to administer and interpret the Mortgage Broker Practices Act in order
to govern the activities of licensed mortgage brokers, loan originators, and
other persons subject to the act.
(3)
What is the scope and coverage of
the Mortgage Broker Practices Act and these rules? There are four
criteria to determine the scope and coverage of the Mortgage Broker Practices
Act and these rules. All of the criteria must be met in order for a person or
entity to fall under the scope and coverage of the act and these rules. The
criteria are:
(a) The persons or entities
conducting business;
(b) The type
of transactions performed when conducting the business;
(c) The identification of residential real
estate; and
(d) The location of the
mortgage broker, loan originator, potential borrower, and residential real
estate.
(4)
What
persons or entities are covered? The Mortgage Broker Practices Act and
these rules apply to all persons or entities defined as mortgage brokers or
loan originators under
RCW
19.146.010. However, certain mortgage brokers
and loan originators may be exempt from all or part of the act under
RCW
19.146.020 as discussed in WAC
208-660-008.
(5)
What types of transactions are
covered? The Mortgage Broker Practices Act and these rules cover the
assisting to obtain any "residential mortgage loan" defined in
RCW
19.146.010 and WAC
208-660-006. Violations of
RCW
19.146.0201, however, are not limited to
residential mortgage loan transactions.
(6)
What is residential real
estate? Residential real estate is real property upon which is
constructed or intended to be constructed, a single family dwelling, or
multiple family dwelling of four or less units. See examples in WAC
208-660-006, "residential real
estate."
(7)
Does the
location of the mortgage broker, loan originator, potential borrower, and
residential real estate affect whether the transaction is covered under the
Mortgage Broker Practices Act? If the mortgage broker, loan originator,
potential borrower, or residential real estate is located in Washington, the
transaction is covered by the Mortgage Broker Practices Act and these rules.
However, the director may choose to defer to other jurisdictions where doing so
would, in the director's sole discretion, achieve the purposes of the Mortgage
Broker Practices Act.
(8)
What are some examples of transactions falling under the scope and
coverage of the Mortgage Broker Practices Act and these rules?
(a) A loan originator employed with Mortgage
Broker, Inc. with a physical office in Redmond, Washington takes a loan
application from a Kirkland, Washington resident for the purchase of a home
located in Bellevue, Washington. Mortgage Broker, Inc. is not exempt from the
Mortgage Broker Practices Act under
RCW
19.146.020. The home located in Bellevue
meets the definition of residential real estate and the purchaser intends to
reside in the home.
(b) A loan
originator with a physical office in Spokane, Washington takes a loan
application from a Yakima, Washington resident for the purchase of a home
located in Oregon. The mortgage broker is not exempt from the Mortgage Broker
Practices Act under
RCW
19.146.020. The home located in Oregon meets
the definition of residential real estate and the purchaser intends to reside
in the home.
(c) A loan originator
with a physical office in Reno, Nevada working for a Nevada mortgage broker
takes a loan application from a Nevada resident for the purchase of a home
located in Olympia, Washington. The mortgage broker is not exempt from the
Mortgage Broker Practices Act under
RCW
19.146.020. The home located in Washington
meets the definition of residential real estate and the purchaser intends to
reside in the home.
Notes
Statutory Authority: RCW 43.320.040, 19.146.223, and
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