Wash. Admin. Code § 208-660-350 - Loan originators-Licensing
(1)
How do I apply for a loan
originator 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 system. See also WAC
208-660-352 Temporary authority
to originate loans. You also must:
(a)
Be eighteen years or older.
(b)
Prove your identity. You
must provide information to prove your identity.
(c)
Complete prelicensing education.
You must complete prelicensing education before submitting the license
application. See WAC
208-660-355.
(d)
Pass a licensing test. You
must take and pass the NMLS test before submitting the license application. See
WAC 208-660-360 Loan
originators-Testing.
(e)
Pay
the application fee. You must pay an application fee for your
application, as well as an administrative fee to the NMLS. See WAC
208-660-550 Department fees and
costs.
(2)
In
addition to reviewing my application, what else will the department consider to
determine if I qualify for a loan originator license?
(a)
General fitness and prior
compliance actions. The department will investigate your background to
see that you demonstrate the experience, character, and general fitness that
commands the confidence of the community and creates a belief that you will
conduct business honestly and fairly within the purposes of the act. This
investigation may include a review of the number and severity of complaints
filed against you, or any person you were responsible for, and a review of any
investigation or enforcement activity taken against you, or any person you were
responsible for, in this state, or any jurisdiction. This investigation may
also include a review of whether you have had a license issued under the act or
any similar state statute denied, suspended, restricted, or revoked.
(b)
License revocations.
(i) You are not eligible for a loan
originator license if you have been found to be in violation of the act or the
rules.
(ii) You are not eligible
for a loan originator license if you have ever had a license issued under the
Mortgage Broker Practices Act or the Consumer Loan Act or any similar state
statute revoked.
(iii) For purposes
of (b) and (c) of this subsection, a "similar statute" may include statutes
involving other financial services, such as insurance, securities, escrow or
banking.
(c)
Criminal history.
(i) You are not
eligible for a loan originator license if you have ever been convicted of a
felony involving an act of fraud, dishonesty, breach of trust, or money
laundering.
(ii) You are not
eligible for a loan originator license if you have been convicted of a gross
misdemeanor involving dishonesty or financial misconduct, or a felony not
involving fraud, dishonesty, breach of trust, or money laundering, within seven
years of the filing of the present application.
(d)
Financial background.
(i) The department will investigate your
financial background including a review of your credit report to determine if
you have demonstrated financial responsibility including, but not limited to,
an assessment of your current outstanding judgments (except judgments solely as
a result of medical expenses); current outstanding tax liens or judgments or
other government liens or filings; foreclosure within the last three years; or
a pattern of seriously delinquent accounts within the past three
years.
(ii) Specifically, you are
not eligible to receive a loan originator license if you have one hundred
thousand dollars or more of tax liens against you at the time of appointment by
a licensed mortgage broker.
(3)
What will happen if my loan
originator license application is incomplete? After submitting your
online application through the NMLS, the department will notify you of any
application deficiencies.
(4)
How do I withdraw my application for a loan originator license?
Once you have submitted the online application through NMLS you may withdraw
the application through NMLS. You will not receive a refund of the NMLS
application fee but you may receive a partial refund of your licensing fee if
the fee exceeds the department's actual cost to investigate the license
application. The withdrawal of your license application will not affect any
license suspension or revocation proceedings in progress at the time you
withdraw your application through the NMLS.
(5)
When will the department consider
my loan originator license application to be abandoned? If you do not
respond as directed by the department's request for information within fifteen
business days, your loan originator 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.
(6)
What happens if the department
denies my application for a loan originator license, and what are my rights if
the license is denied? Under the Administrative Procedure Act, chapter
34.05 RCW, you have the right to request a hearing. To request a hearing,
notify the department, in writing, within twenty days from the date of the
director's notice to you notifying you your license application has been
denied. See also WAC
208-660-009.
(7)
May I transfer, sell, trade,
assign, loan, share, or give my loan originator license to someone else?
No. A loan originator license authorizes only the individual named on the
license to conduct the business at the location listed on the
license.
(8)
How do I change
information on my loan originator license? You must submit an amendment
to your license through the NMLS. You may be charged a fee.
(9)
What is an inactive loan originator
license? When a licensed loan originator is not sponsored by a licensed
or exempt company, the license is inactive. When an individual holds an
inactive license, they may not conduct any of the activities of a loan
originator, or hold themselves out as a licensed loan originator.
(10)
When my loan originator license is
inactive, am I subject to the director's enforcement authority? Yes.
Your license is granted under specific authority of the director and under
certain situations you may be subject to the director's authority even if you
are not doing any activity covered by the act.
(11)
May I originate loans from a
website when my license is inactive? No. You may not originate loans, or
engage in any activity that requires a license under the act, while your
license is inactive.
(12)
When my loan originator license is inactive, must I continue to pay
annual fees, and complete continuing education for that year? Yes. You
must comply with all the annual licensing requirements or you will be unable to
renew your inactive loan originator license.
(13)
How do I activate my loan
originator license? The sponsoring company must submit a sponsorship
request for your license through the NMLS. The department will notify you and
all the companies you are working with of the new working relationship if
approved.
(14)
When may the
department issue interim loan originator licenses? To prevent an undue
delay, the director may issue interim loan originator 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. In no case shall these requirements be less than the minimum
requirements to obtain a license under the S.A.F.E. Act.
(15)
When does my loan originator
license expire? The loan originator license expires annually on December
31st. If the license is an interim license, it may expire in less than one
year.
(16)
How do I renew my
loan originator license?
(a) You must
continue to meet the minimum standards for license issuance. See
RCW
19.146.310.
(b) Before the license expiration date you
must renew your license through the NMLS. Renewal consists of:
(i) Pay the annual assessment fee;
and
(ii) Meet the continuing
education requirement. You will not have a continuing education requirement in
the year in which you complete the core twenty hours of prelicensing education.
See WAC 208-660-370.
(c) The renewed license is valid until it
expires, or is surrendered, suspended or revoked.
(17)
If I let my loan originator
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 existing license. However, if you renew your license during
this two-month period, in addition to paying the annual assessment on your
license, you must pay an additional fifty percent of your annual assessment.
See subsection (16) 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.
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.
(18)
If I let my loan
originator license expire and then apply for a new loan originator license,
must I comply with the continuing education requirements from the prior license
period? Yes. Before the department will consider your new loan
originator application complete, you must provide proof of satisfying the
continuing education requirements from the prior license period.
(19)
May I still originate loans if my
loan originator license has expired? No. Once your license has expired
you may no longer conduct the business of a loan originator, or hold yourself
out as a licensed loan originator, as defined in the act and these
rules.
(20)
What happens to
the loan applications I originated before my loan originator license
expired? Because loan files belong to the licensed mortgage broker,
existing loan applications must be processed by the licensed mortgage broker,
unless the borrower makes a written demand that the loan file be transferred to
another licensed entity. See WAC
208-660-300(5) and
(6).
(21)
May I surrender my loan
originator's license? Yes. Only you may surrender your license before
the license expires through the NMLS.
Surrendering your loan originator license does not change your civil or criminal liability, or your liability for any administrative actions arising from acts or omission occurring before the license surrender.
(22)
Must
I display my loan originator license where I work as a loan originator?
No. Neither you nor the mortgage broker company is required to display your
loan originator license. However, evidence that you are licensed as a loan
originator must be made available to anyone who requests it.
(23)
Must I include my license number
on any documents? You must include your license number closely following
your license name on (a) through (d) of this subsection. An example of closely
following is: Your license name followed by your title (if you use one)
followed by your license number.
(a)
Solicitation. This includes correspondence in any form. Correspondence that is
not a solicitation does not have to include your license number.
(b) Business cards.
(c) All advertisements and marketing that
contain your license name.
(d) Any
state or federal form that requires your license number. See also WAC
208-660-350(25).
(24)
When must I disclose my
loan originator license number? In the following situations you must
disclose your loan originator license number and the name and license number of
the mortgage broker you are associated with:
(a) When asked by any party to a loan
transaction, including third party providers;
(b) When asked by any person you have
solicited for business, even if the solicitation is not directly related to a
mortgage transaction;
(c) When
asked by any person who contacts you about a residential mortgage
loan;
(d) When taking a residential
mortgage loan application.
(25)
May I conduct business and
advertise under a name other than the name on my loan originator
license?
You must use the name on your license when you are conducting business and in your advertisements with the following exceptions: Except, use of your middle name is not required. Except, you may use only your middle and last name; except, you may use a nickname as your first name if it is registered in NMLS on your MU4 as an "other" name.
(26)
Will I have to obtain an
individual bond if the company I work for is exempt from licensing?
Reserved.
(27)
Will I have to
file quarterly call reports if I have an individual bond?
Reserved.
Notes
Statutory Authority: Chapter 43.320 RCW and
RCW
19.146.223. 12-18-048, § 208-660-350, filed
8/29/12, effective 11/1/12. Statutory Authority:
RCW
43.320.040 and
19.146.223. 11-22-022, §
208-660-350, filed 10/25/11, effective 11/25/11. Statutory Authority:
RCW
43.320.040,
19.146.223, and
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