(1)
How do
I apply for a mortgage broker license? Your application consists of an
online filing through the NMLS and Washington specific requirements provided
directly to DFI. You must pay an application fee through the NMLS.
(a)
Appoint a designated broker.
You must appoint a designated broker who meets the requirements of WAC
208-660-250.
(b)
Submit an
application. You must complete an online application through the
NMLS.
(c)
Pay the application
and license fees. You will have to pay application fees to cover the
costs of processing the application. You must also pay a separate annual
license fee. See WAC
208-660-550 Department fees and costs.
(d)
Prove your identity. You
must provide information about the identity of owners, principals, officers,
and the designated broker, including fingerprints.
(e)
Provide a surety bond.
Mortgage brokers must have a surety bond based upon the annual loan origination
volume of the mortgage broker. See WAC
208-660-175(1)(e).
(2)
What information will the
department consider when deciding whether to approve a mortgage broker license
application? The department considers the financial responsibility,
character, and general fitness of the applicant, principals, and the designated
broker.
(3)
Why does the
department consider financial responsibility, character, and general fitness
before issuing a mortgage broker license? One of the purposes of the act
is to ensure that mortgage brokers and loan originators deal honestly and
fairly with the public. Applicants, principals, and designated brokers who have
demonstrated their financial responsibility, character, and general fitness to
operate their businesses honestly, fairly, and efficiently are more likely to
deal honestly and fairly with the public.
(4)
What specific information will the
department consider to determine if the mortgage broker business will be
operated honestly, fairly, and in compliance with applicable law?
(a) Whether the applicant, licensee, or other
person subject to the act has had any license, or any authorization to do
business under any similar statute of this or any other state, denied,
suspended, or restricted within the prior five years.
(b) Whether the applicant has ever had a
license denied or revoked under this chapter or any similar state statute,
including a license for insurance, securities, consumer lending, or
escrow.
(c) Whether the applicant,
licensee, or other person subject to the act has been convicted of, or pled
guilty or nolo contendere to, in a domestic, foreign, or military court to:
(i) A gross misdemeanor involving dishonesty
or financial misconduct within the prior seven years;
(ii) A felony within the prior seven years;
or
(iii) A felony that involved an
act of fraud, dishonesty, breach of trust, or money laundering at any time
preceding the date of application.
(d) Whether the licensee or other person
subject to the act is, or has been, subject to a cease and desist order or an
injunction issued pursuant to the act, or the Consumer Protection Act, or has
been found through an administrative, civil, or criminal proceeding to have
violated the provisions of the act or rules, or the Consumer Protection Act,
chapter 19.86 RCW.
(e) Whether the
director has filed a statement of charges, or there is an outstanding order by
the director to cease and desist against the licensee or other person subject
to the act.
(f) Whether there is
documented evidence of serious or significant complaints filed against the
licensee, or other person subject to the act, and the licensee or other person
subject to the act has been notified of the complaints and been given the
opportunity to respond.
(g) Whether
the licensee has allowed the licensed mortgage broker business to deteriorate
into a condition that would result in denial of a new application for a
license.
(h) Whether the licensee
or other person subject to the act has failed to comply with an order,
directive, subpoena, or requirement of the director or director's designee, or
with an assurance of discontinuance entered into with the director or
director's designee.
(i) Whether
the licensee or other person subject to the act has interfered with an
investigation, or disciplinary proceeding by willful misrepresentation of facts
before the director or director's designee, or by the use of threats or
harassment against a client, witness, employee of the licensee, or
representative of the director for the purpose of preventing them from
discovering evidence for, or providing evidence in, any disciplinary proceeding
or other legal action.
(5)
What will happen if my mortgage
broker license application is incomplete? If your application is
incomplete your file will be marked "pending-deficient" in the NMLS. The
department will either identify each deficiency or respond that there are
multiple deficiencies and ask you to contact the department. You are
responsible for reviewing your record and responding to each issue.
(6)
How do I withdraw my application
for a mortgage broker license? You may request to withdraw the
application through the NMLS.
(7)
When will the department consider my mortgage broker license application
abandoned? If you do not respond as directed by the department's request
for information and within fifteen business days, your license application is
considered abandoned and you forfeit all fees paid. Failure to provide the
requested information will not affect new applications filed after the
abandonment. You may reapply by submitting a new application package and new
application fee.
(8)
What are
my rights if the director denies my license application, or denies, suspends,
or revokes my mortgage broker license? The Administrative Procedure Act,
chapter 34.05 RCW, governs the proceedings for license application denials,
cease and desist orders, license suspension or revocation, the imposition of
civil penalties or other remedies ordered by the department, and any appeals or
reviews of those actions. See also WAC
208-660-009.
You have the right to request an administrative hearing. To
request a hearing, you must notify the department within twenty days from the
date of the director's notice to you that your license application has been
denied, that you wish to have a hearing. See also WAC 208-660-009.
Upon denial of your mortgage broker license application, and
provided the department finds no unlicensed activity, the department will
return your surety bond, and refund any remaining portion of the license fee
that exceeds the department's actual cost to investigate the license.
(9)
May I advertise my
business while I am waiting for my mortgage broker license application to be
processed? No. It is a violation of the act for nonlicensed, non-exempt
mortgage brokers or loan originators to hold themselves out as mortgage brokers
or loan originators in Washington.
(10)
May I originate Washington
residential mortgage loans while waiting for my mortgage broker license
application to be processed? No. You may not originate loans prior to
receiving your mortgage broker license.
(11)
How do I change information on my
mortgage broker license? You must file a license amendment application
through the NMLS. See also WAC
208-660-400.
(12)
When does a mortgage broker
license expire? The mortgage broker license expires annually. The
expiration date is shown on the license. If the license is an interim license,
it may expire in less than one year.
(13)
When may the department issue
interim mortgage broker licenses? To prevent an undue delay, the
director may issue interim mortgage broker licenses, including branch office
licenses, with a fixed expiration date. The license applicant must have
substantially met the initial licensing requirements, as determined by the
director, to receive an interim license.
One example of having substantially met the initial licensing
requirements is: Submitting a complete application, paying all application
fees, and the department having received and reviewed the result of the
applicant's background check.
(14)
How do I renew my mortgage broker
license?
(a) Before the license
expiration date you must:
(i) Complete a
renewal request through the NMLS.
(ii) Show evidence that your designated
broker completed the required annual continuing education.
(iii) Pay the annual license assessment
fee.
(b) The renewed
license is valid for the term listed on the license or until surrendered,
suspended, or revoked.
(15)
If I let my mortgage broker
license expire must I apply to get a new license? If you complete all
the requirements for renewal on or before the last day of February each year,
you may renew an expired license. However, if you renew your license after the
expiration, in addition to paying the annual assessment on your license, you
must pay an additional fifty percent of your annual assessment. See subsection
(14) of this section for the license renewal requirements.
During this two-month period, your license is expired and you
must not conduct any business under the act that requires a license until your
license has been renewed.
If you fail to comply with the renewal request requirements
by the last day of February each year, you must apply for a new license.
(16)
May I still conduct my
mortgage broker business if my mortgage broker license has expired? No.
If your mortgage broker license expires, you must not conduct any business
under the act that requires a license until you renew your license.
(17)
What should I do if I wish to
close my mortgage broker business? You may surrender the mortgage broker
license by submitting a surrender request through the NMLS and submitting a
completed departmental closure form. Surrendering your license does not change
your civil or criminal liability, or your liability for any administrative
actions arising from any acts or omissions occurring before you surrender your
license. Contact the Washington department of revenue to find out how to handle
any unclaimed funds in your trust account.
(18)
May I transfer, sell, trade,
assign, loan, share, or give my mortgage broker license to another person or
company? No. A mortgage broker license authorizes only the person named
on the license to conduct the business at the location listed on the license.
See also WAC
208-660-155(2).