We previously reported that the Oregon Division of Financial Regulation (the Division) amended its administrative rules pertaining to branch licensure to authorize remote work for licensed loan originators and employees. The Division has indicated that it does not plan on issuing similar regulations for Oregon Consumer Finance Companies because individuals working for such companies are not licensed similar to mortgage loan originators, and that licensed Consumer Finance Companies permitting remote work by their employees need to have safeguards in place to protect consumers and the

Earlier this month, the Washington Department of Financial Institutions released draft regulations on remote work for Consumer Loan Act licensees. The proposed regulations would permit a sponsored and licensed loan originator to work from the loan originator’s residence without licensing it as a branch location, subject to the following conditions:

• The company must have written policies and procedures that include appropriate risk-based monitoring and oversight processes for supervision of the loan originators and the loan originator must comply with those procedures;
• Access to company platforms and customer information must be in accordance with the required written information securing plan, which must include safeguards that protect borrower information;
• Communications containing customers’ protected personal information must be in compliance with federal and state information security requirements, including applicable provisions of Gramm-Leach-Bliley and the Safeguards Rule;
• The loan originator’s residence may not be held out in any manner, directly or indirectly, as a licensed location, unless so licensed. If the residence is not licensed the following activities are not permitted at the residence:
  • Conducting in-person customer interactions;
  • Storing physical records containing customer information;
  • Receiving physical records containing customer information; and
  • Advertising the location as a licensed main or branch office.

• The loan originator’s NMLS record must designate the licensed main office or a licensed branch office as their registered location.
• The loan originator must use their registered location from NMLS in the “loan originator information” section on residential mortgage loan

The DFI will be holding a hearing on the rules on November 16 and is receiving comments on the proposed rules until October 30th. The amendments are intended to be adopted around the end of November. A copy of the proposed amendments to the regulations is available here.

[View source.]