Transition Plan: Washington Department of Financial Institutions (DFI)

Current Company Licensees/Registrants:

Senate Bill 6471 (chapter 78, Laws of 2008), passed by the legislature, and signed by the Governor on March 19, 2008, requires that all lenders doing business in Washington be licensed by the Department of Financial Institutions under the Consumer Loan Act (CLA), chapter 31.04 RCW.  The law became effective June 12, 2008 which means lenders must hold a Consumer Loan License before doing business in Washington.  Lenders not currently licensed can meet this requirement by submitting through NMLS a Form MU1 for their company and a Form MU2 for each of their control persons.

Companies holding a Washington State Consumer Loan Company License in Washington have until September 1, 2008 to complete and submit through NMLS a Form MU1 for their company and a Form MU2 for each of their control persons.

Additionally, for each branch holding a Consumer Loan Branch Office License the company must complete and submit through NMLS a Form MU3 by September 1, 2008.

While Consumer Loan Company & Branch filings will be accepted by the NMLS through 12/31/08, the Department of Financial Institutions cannot guarantee the licensee will have sufficient time to complete the process and clear deficiencies if filed after the September 1^st.  No new transition filings will be accepted by the NMLS as of January 1, 2009.

Companies holding a Washington State Exempt Mortgage Broker Registration or Mortgage Broker License have until October 1, 2008 to complete and submit through NMLS a Form MU1 for their company and a Form MU2 for each of their control persons and a Form MU4 for their Designated Broker.

For each branch holding an Exempt Mortgage Broker Branch Registration or a Mortgage Broker Branch Office License, the company must complete and submit through NMLS a Form MU3 by October 1, 2008.

While Mortgage Broker and Exempt Mortgage Broker filings will be accepted by the NMLS through 12/31/08, the Department of Financial Institutions cannot guarantee the licensee will have sufficient time to complete the process and clear deficiencies if filed after the October 1^st deadlines.  No new transition filings will be accepted by the NMLS as of January 1, 2009.

As a current licensee, you must have all of your company’s Washington license numbers available when completing and submitting Form MU1 and Form MU3(s) through NMLS.

DFI no longer accepts Mortgage Broker, Consumer Loan or Exempt Mortgage Broker applications via paper.   All new applications must be completed through the Nationwide Licensing System (NMLS). DFI no longer accepts amendment applications via paper. All amendment applications must be completed through the Nationwide Licensing System (NMLS).

Note: If you have submitted these forms in another state, you do not need to re-enter your company record into NMLS.  You will only need to identify the appropriate license in Washington and complete a few state specific fields and pay the NMLS fees.

Loan Originators:

Loan originators who hold a current Washington Loan Originator license have until October 1, 2008 to complete and submit a Form MU4 through NMLS.

Designated Brokers must complete and submit Form MU4 at the same time the company is transitioning their Mortgage Broker License.  Be sure to identify the appropriate license (Designated Broker) when selecting the license to transition.  Designated Brokers have until October 1, 2008 to complete and submit Form MU4 through NMLS with their Mortgage Broker License.

While Loan Originator & Designated Broker filings will be accepted by the NMLS through 12/31/08, the Department of Financial Institutions cannot guarantee the licensee will have sufficient time to complete the process and clear deficiencies if filed after the October 1^st deadlines.  No new transition filings will be accepted by the NMLS as of January 1, 2009.

Note: If you have submitted a Form MU4 in another state, you do not need to re-enter your record into NMLS.  You will only need to identify the appropriate license in Washington and complete a few state specific fields.

Loan officers can complete and submit Form MU4 themselves or their company can complete Form MU4 and have the loan officer log in to the NMLS and electronically attest to its accuracy.

Loan officers will have successfully met this requirement when the DFI has approved their Loan Originator license transition through the NMLS.  Current Loan Originator licensees must have their Washington license number available when completing and submitting their Form MU4 through NMLS.

Loan officers should consult with their company before logging into the NMLS and completing a Form MU4. The party that submits the MU4 pays the NMLS fee.