The Washington Department of Financial Institutions (DFI) recently adopted final rules amending the regulations implementing the Washington Consumer Loan Act (WCLA) and the Washington Mortgage Broker Practices Act (WMBPA), effective November 24, 2019. The primary purpose of the revisions was to implement amendments to the federal SAFE Act authorizing temporary authority, though additional changes were made to the regulations in these final rules. The Washington DFI originally released the proposed rule amendments in August 2019.
Certain key changes under the amended WCLA rules include:
Certain key changes under the amended WMBPA rules include:
Other changes under both the WCLA and WMBPA amended rules include, for example, reordering or moving of sections or specific language, the addition of citations, and various changes made for clarification purposes.
In addition to implementing temporary authority under the WCLA and WMBPA amended rules, the Washington DFI also announced the addition of several new statuses to be added to NMLS to support the new temporary authority, clarifying that, as of November 24, 2019, Mortgage Loan Originator (MLO) applications from certain individuals may qualify for Temporary Authority to Operate (TA) while the individual is meeting state application requirements. These statuses include:
The Washington DFI also provided some related guidance, including, among other things, that: (i) the evaluation of TA eligibility happens on any MLO application submitted on or after November 24; (ii) an individual must have a relationship with a company before the individual is TA eligible; and (iii) the company employing an MLO with TA is subject to both the federal SAFE Act as well as Washington state law to the same extent as if the MLO was licensed.