Washington Mortgage Licensing

Washington Mortgage licensing changed a lot in 2006 and 2007. As of 1/1/2007, Loan Officers must be licensed by the state. As of 1/1/2008, all loan originators must complete a test in order to remain licensed. Another major change in 2007 is that the Broker Exam is now offered nationwide. Prior to this, someone in your mortgage company would need to fly to Washington in order to complete a mortgage broker test. Now Washington mortgage licensing is much easier. The test is fairly difficult, but with some studying, it can be taken locally. Only one person must be a designated mortgage broker for your company in order for you to obtain a license.
What activities can a licensed mortgage broker engage in under the Mortgage Broker Practices Act (MBPA) without triggering the license requirements of the Consumer Loan Act (CLA)?

As a licensed mortgage broker you may act in these capacities:

Broker – assisting borrowers, or holding yourself out as able to assist borrowers, in obtaining a residential mortgage loan. Loans close in the name of the lender.

Table Fund – “Table-funding” means a settlement at which a mortgage loan is funded by a contemporaneous advance of loan funds and an assignment of the loan to the person advancing the funds. The mortgage broker originates the loan and closes the loan in its own name with funds provided contemporaneously by a lender to whom the closed loan is assigned. WAC 208-660-006.

No longer allowed as of 1/1/10 – Non-delegated Correspondent – You close loans in your name with funds provided by a lender through a line of credit. The lender provides the underwriting criteria the borrower must meet and makes the final underwriting decision.

Washington Mortgage Broker Practices Act FAQs

Mortgage Banker Licensing

Consumer Loan License

Physical In-State Office Required: No
Qualifying Individual: No
Minimum Net Worth: $0
Surety Bond: $30,000 to $150,000
Experience/Education:
Comments: The greatest benefit to this type of mortgage licenses versus the mortgage broker license is the exemption from needed to have a Designated Broker that has passed the WA Broker Exam and the ability to bank loans. However, you must pay an annual assessment fee based on your loan volume that mortgage brokers do not have to pay. Requires proof of a warehouse line or other funding capacity. Requires 1 employee to obtain a WA LO License.

License Cost Breakdown – Estimated fees not including Integrity Mortgage Licensing Service Fee:
$175 – Foreign Entity Fee
$125 – Registered Agent Fee
$300 – Surety Bond Fee
$1,162.21 – Company License Fee

Mortgage Broker Licensing

Mortgage Broker License

Physical In-State Office Required: No
Qualifying Individual: Yes, must have 2 years of experience in origination or quality control (Verified by 1099s or w-2s) and must pass the WA Designated Broker Test and complete WA LO Licensing Requirements.
Minimum Net Worth: $ None
Surety Bond: $20,000 + additional bonding per loan officer.

License Cost Breakdown – Estimated fees not including Integrity Mortgage Licensing Service Fee:
$175 – Foreign Entity Fee
$125 – Registered Agent Fee
$200 – Surety Bond Fee
$1,001 – Company License Fee

Designated Broker with 2 years verifiable mortgage experience (1099s or w-2s)
$92 – WA NMLS Test for Designated Broker
$52 – WA Broker Test for Designated Broker
$79 – 4 hour WA Education Course Fee for Designated Broker
$209 – LO License Fee for Designated Broker
$30 – Broker Registration Fee for Designated Broker

Regulated by:

Department of Financial Institutions
PO Box 41200
Olympia WA 98504-1200

1501 Israel Rd. SW
Tumwater, WA 98501
Telephone: 360-902-8700
Fax: 360-586-5068
http://www.dfi.wa.gov/