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STATE OF WASHINGTON
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Is a
license required? |
A license is required for anyone who wants for loan modification as well as for mortgage brokers. |
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State
specific loan modification law? |
Yes. The Washington State Department of Financial Institution has interpreted The Consumer Loan Act RCW 31.04.035 to require that anyone engaging a loan modification be licensed. |
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Effect
of becoming a licensed Mortgage Broker? |
A mortgage broker is subject
to the Mortgage Broker Practices Act(attached as Schedule A),
Chapter 19.146 which outlines various requirements, duties and
obligations for mortgage brokers. RCW 19.146.010.12 defines a
mortgage broker as “means any person who for compensation or gain, or
in the expectation of compensation or gain (a) assists a person in
obtaining or applying to obtain a residential mortgage loan or (b)
holds himself or herself out as being able to assist a person in
obtaining or applying to obtain a residential mortgage loan.” |
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Penalties
for operating in the state without a license: |
RCW 19.146.110 provides for criminal penalties for operating unlicensed or violating the act. |
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Is an
advanced fee permitted? |
Yes. RCW 19.146.070.2(b) states that a mortgage broker may “Solicit or receive fees for third party provider goods or services in advance. Fees for any goods or services not provided must be refunded to the borrower and the mortgage broker may not charge more for the goods and services than the actual costs of the goods or services charged by the third party provider.” |
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Is a
written agreement required? |
Yes. RWC 19.146.040 requires every contract between a mortgage broker and a client be in writing and shall contain the entire agreement of the parties. RWC 19.146.030 lists certain disclosure requirements. |
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Washington
Statutes |
Consumer Loan Act: Ctrl + Click Here Mortgage Broker Practices Act: Ctrl + Click Here Licensing requirements for loan modification: Ctrl + Click Here Licensing requirements for mortgage brokers: Ctrl + Click Here |