Washington State Updates Consumer Loan Licensing Requirements
Effective January 1, 2018, the amount of a surety bond required for a consumer loan license will change. The amount of a surety bond will be calculated based on the volume of closed loans originated in the prior year. Additional changes were made for institutions who only originate and/or service residential loans, broker surety bonds at the time of application, combined residential and nonresidential loans, third party loan modification service providers.
Furthermore, two new sections were added to Washington’s Consumer Loan Act. The first section, WAC 208-620-321 explains the capital requirements for non-depository residential mortgage loan servicer applicants and licensee servicing loans guaranteed by one or more government sponsored entity (GSE) and/or corporation. Secondly, WAC 208-620-322 outlines capital requirements for a non-depository residential mortgage loan servicer applicant and licensee servicing loans not guaranteed by a GSE and/or government corporation.
Note, the state legislature has repealed section WAC 208-620-325 which outlined the surety bond amount during the first year of licensing.
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