Choose the Right Mortgage Licenses
Before applying to get a Mortgage Broker license, make sure that it is the correct mortgage license for your business activity.
There are two types of mortgage licenses that allow you to provide home mortgage loans to consumers. Although it is permitted to hold both mortgage licenses, most businesses choose to apply for only one.
- For more detail, please study the requirements for mortgage brokers by reviewing the Mortgage Broker Practices Act (RCW 19.146) and supporting rules (WAC 208-660). Mortgage Broker Licenses: If you intend to lend or broker mortgage loans with interest rates at or below the Washington State usury limit (RCW 19.52) of approximately 12%, you will want a mortgage broker license.
- For more detail, please study the requirements for a mortgage license companies by reviewing the Consumer Loan Act (RCW 31.04) and supporting rules (WAC 208-620). Consumer Loan License: If you intend to lend or broker high interest loans exceeding the Washington State usury limit (RCW 19.52) of approximately 12%, you will want a consumer loan license.
Exemptions from making the switch from broker to banker Mortgage Bankers
DFI does not license mortgage bankers at this time. However, carefully read the mortgage broker definition from the Mortgage Broker Practices Act (RCW 19.146.010(12):
"a person in obtaining or applying to obtain a residential mortgage loan or (b) holds himself or herself out as being able to make a residential mortgage loan or assist a person in obtaining or applying to obtain a residential mortgage loan." Mortgage broker means any person who for compensation or gain, or in the expectation of compensation or gain (a) makes a residential mortgage broker licensing or assists
If you are a mortgage banker, consider licensure/exemption under the Mortgage Broker Practices Act or consider licensure under the Consumer Loan Act.
Wholesale Lenders
DFI will not take regulatory action against companies who conduct wholesale or secondary market activities without originating mortgage loans in WA. The intent of the mortgage broker to mortgage banker Practices Act is to protect consumers who have entered into a transaction for the origination of a single family residential mortgage loan.
Note Brokering
"Note brokering" is not regulated by the Mortgage Broker Practices Act.
Be sure to exercise caution to avoid making loans exceeding, or having the potential for mortgage licensing, usurious rates (RCW 19.52) without first holding a Consumer Loan licenses.
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