Wash. Admin. Code § 208-660-400 - Reporting requirements and notices to the department
(1)
What are my NMLS mortgage call
report filing requirements? You are required to file accurate and
complete mortgage call reports, including residential mortgage loan activity
reports and financial condition reports, through the NMLS on the dates and in a
form prescribed by the director or NMLS.
(2)
As a licensed mortgage broker what
are my reporting responsibilities when something of significance happens to my
business?
(a)
Notification
required. You must notify the director through amendment to the NMLS and
upload supporting documents, if applicable, to a change of:
(i) Principal place of business or any branch
offices;
(ii) Sponsorship status of
a mortgage loan originator;
(iii)
Answers to the NMLS generated disclosure questions or if your answer does not
change but another event has occurred that requires disclosure and uploading of
explanatory documentation.
(iv) Any
change in the information supplied to the director in your original
application.
(b)
Prior notification required. You must notify the director in
writing twenty days prior to a change of:
(i)
Name or legal status (e.g., from sole proprietor to corporation,
etc.);
(ii) Legal or trade name;
or
(iii) A change of ownership
control of twenty percent or more. The department will consider the
qualifications of the new people and notify you whether or not the proposed
change is acceptable. A criminal background check through NMLS will be
required.
(iv) The addition of a
control person. A criminal background check through NMLS will be
required.
(c)
Post
notification within ten business days. You must notify the director
through the NMLS or in writing to the director within ten days after an
occurrence of any of the following:
(i) Change
in mailing address, telephone number, fax number, or email address;
(ii) Cancellation or expiration of its
Washington state business license;
(iii) Change in standing with the Washington
secretary of state, including the resignation or change of the registered
agent;
(iv) Receipt of notification
of cancellation of your surety bond;
(v) Receipt of notification of license
revocation proceedings against you in any state;
(vi) If you, or any officer, director, or
principal is convicted of a felony, or a gross misdemeanor involving lending,
brokering or financial misconduct; or
(vii) Name and mailing address of your
registered agent if you are out-of-state.
(d)
Post notification within twenty
business days. You must notify the director in writing within twenty
business days after the occurrence of any of the following developments:
(i) The filing of a felony indictment or
information related to lending or brokering activities against you, or any
officer, board director, or principal, or an indictment or information
involving dishonesty against you, or any officer, board director, or
principal;
(ii) The receipt of
service of notice of the filing of any material litigation against you;
(iii) The change in your
residential address or telephone number; or
(iv) The closure or surrender of a main or
branch license location.
(e)
Other post notification.
Within thirty days of a data breach you must notify the director in writing.
This notification requirement may change based on directives or recommendations
from law enforcement. See also WAC
208-660-480.
(3)
As a licensed mortgage loan
originator, what are my reporting responsibilities? You must notify the
director through amendment to the NMLS and upload supporting documents, if
applicable, within ten business days to a change of:
(a) Answers to the NMLS generated disclosure
questions or if your answer does not change but another event has occurred that
requires disclosure and uploading of explanatory documentation;
(b) Sponsorship status with a licensed
mortgage broker;
(c) Residence
address; or
(d) Any change in the
information supplied to the director in your original application.
(4)
Must I notify the
department of the physical address of my mortgage broker books and
records? Yes. You must provide the physical address of your mortgage
broker books and records in your initial license application through NMLS. If
the location of your books and records changes, you must provide the
department, through the NMLS, with the new physical address within five
business days of the change.
(5)
Must I notify the department if my designated broker leaves, or is no
longer my designated broker? Yes. You must notify the department,
through NMLS, within five business days of the loss of or change of status of
your designated broker. See WAC
208-660-180(3).
(6)
If I am a registered agent under
the act, must I notify the department if I resign? Yes. You must provide
the department with your statement of resignation letter at least thirty-one
days prior to the intended effective date. You must also provide a copy of the
resignation letter to the licensed mortgage broker. The department will
terminate your appointment thirty-one days after receiving your resignation
letter.
(7)
What are my
responsibilities when I sell my business?
(a) At least thirty days prior to the
effective date of sale, you must notify the department of the pending sale by
completing the following: Notify the department in writing and provide
requested information. At the effective date of sale, update and file all
required information through the NMLS for your main and any branch offices,
including updating information about the location of your books and
records.
(b) You must give written
notice to borrowers whose applications or loans are in process, advising them
of the change in ownership.
(c) You
must give written notice to third party providers that have or will provide
services on loans in process, and all third-party providers you owe money to,
bringing accounts payable current.
(d) You must reconcile the trust account and
return any funds to the borrowers or others to whom they belong, or transfer
funds into a new trust account at the borrower's direction. If excess funds
still remain and are unclaimed, follow the procedures provided by the
department of revenue's unclaimed property division.
(8)
Must I notify the department if I
cease doing business in this state? Yes. You must notify the department
within twenty days after you cease doing business in the state by updating your
MU1 record through the NMLS.
(9)
Must I notify the department of changes to my trust account? Yes.
You must notify the department within five business days of any change in the
status, location, account number, or other particulars of your trust account,
made by you or the federally insured financial institution where the trust
account is maintained. A change in your trust account includes the addition of
a trust account.
(10)
What
must I do if my licensed mortgage broker company files for bankruptcy?
(a) Notify the director within ten business
days after filing the bankruptcy.
(b) Respond to the department's request for
information about the bankruptcy.
(11)
If I am a designated broker and
file for personal bankruptcy, what are my reporting responsibilities? A
designated broker must notify the department in writing within ten business
days of filing for bankruptcy protection.
(12)
If I am a designated broker and
file for personal bankruptcy, what action may the department take? The
director may require the licensed mortgage broker to replace you with another
designated broker.
(13)
If I
am a loan originator and file for personal bankruptcy, what are my reporting
responsibilities? A licensed loan originator must notify the director in
writing within ten business days of filing for bankruptcy protection.
(14)
If I am a loan originator and file
for personal bankruptcy, what action may the department take? Depending
on the circumstances, the director may revoke or condition your license.
(15)
When may I apply for a
license after surrendering one due to my personal bankruptcy filing? If
you surrendered your license, you may apply for a license at any time. However,
the department may deny your license application for three years after the
bankruptcy has been discharged provided that no new bankruptcies have occurred
or are in progress.
(16)
Who
in the mortgage broker company must notify the department if they are charged
with or convicted of a crime? Licensees, whether on active or inactive
license status, must notify the department in writing within ten business days
of being:
(a) Charged by indictment or
information with any felony, or a gross misdemeanor involving dishonesty or
financial misconduct in any jurisdiction.
(b) Convicted of any felony, or any gross
misdemeanor involving dishonesty or financial misconduct in any
jurisdiction.
(c) Convicted of any
felony involving fraud, dishonesty, breach of trust, or money laundering in any
jurisdiction.
(d) Convicted outside
of Washington for any crime that if charged in Washington would constitute a
felony, or gross misdemeanor for dishonesty or financial misconduct.
(17)
Who in the mortgage
broker company must notify the department if they are the subject of an
administrative enforcement action? Licensees, whether holding active or
inactive licenses, must notify the department in writing within ten business
days of the occurrence if:
(a) Charged with
any violations by an administrative authority in any jurisdiction; or
(b) The subject of any administrative action,
including a license revocation action, in any jurisdiction.
Notes
Statutory Authority: Chapter 43.320 RCW and
RCW
19.146.223. 12-18-048, § 208-660-400, filed
8/29/12, effective 11/1/12. Statutory Authority:
RCW
43.320.040,
19.146.223, and
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