Section 208-660-400 - Reporting requirements and notices to the department(1)What are my NMLS mortgage call report filing requirements? You are required to file accurate and complete mortgage call reports, including residential mortgage loan activity reports and financial condition reports, through the NMLS on the dates and in a form prescribed by the director or NMLS.(2)As a licensed mortgage broker what are my reporting responsibilities when something of significance happens to my business?(a)Notification required. You must notify the director through amendment to the NMLS and upload supporting documents, if applicable, to a change of: (i) Principal place of business or any branch offices;(ii) Sponsorship status of a mortgage loan originator;(iii) Answers to the NMLS generated disclosure questions or if your answer does not change but another event has occurred that requires disclosure and uploading of explanatory documentation.(iv) Any change in the information supplied to the director in your original application.(b)Prior notification required. You must notify the director in writing twenty days prior to a change of:(i) Name or legal status (e.g., from sole proprietor to corporation, etc.);(ii) Legal or trade name; or(iii) A change of ownership control of twenty percent or more. The department will consider the qualifications of the new people and notify you whether or not the proposed change is acceptable. A criminal background check through NMLS will be required.(iv) The addition of a control person. A criminal background check through NMLS will be required.(c)Post notification within ten business days. You must notify the director through the NMLS or in writing to the director within ten days after an occurrence of any of the following:(i) Change in mailing address, telephone number, fax number, or email address;(ii) Cancellation or expiration of its Washington state business license;(iii) Change in standing with the Washington secretary of state, including the resignation or change of the registered agent;(iv) Receipt of notification of cancellation of your surety bond;(v) Receipt of notification of license revocation proceedings against you in any state;(vi) If you, or any officer, director, or principal is convicted of a felony, or a gross misdemeanor involving lending, brokering or financial misconduct; or(vii) Name and mailing address of your registered agent if you are out-of-state.(d)Post notification within twenty business days. You must notify the director in writing within twenty business days after the occurrence of any of the following developments: (i) The filing of a felony indictment or information related to lending or brokering activities against you, or any officer, board director, or principal, or an indictment or information involving dishonesty against you, or any officer, board director, or principal;(ii) The receipt of service of notice of the filing of any material litigation against you; (iii) The change in your residential address or telephone number; or(iv) The closure or surrender of a main or branch license location.(e)Other post notification. Within thirty days of a data breach you must notify the director in writing. This notification requirement may change based on directives or recommendations from law enforcement. See also WAC 208-660-480.(3)As a licensed mortgage loan originator, what are my reporting responsibilities? You must notify the director through amendment to the NMLS and upload supporting documents, if applicable, within ten business days to a change of: (a) Answers to the NMLS generated disclosure questions or if your answer does not change but another event has occurred that requires disclosure and uploading of explanatory documentation;(b) Sponsorship status with a licensed mortgage broker;(c) Residence address; or(d) Any change in the information supplied to the director in your original application.(4)Must I notify the department of the physical address of my mortgage broker books and records? Yes. You must provide the physical address of your mortgage broker books and records in your initial license application through NMLS. If the location of your books and records changes, you must provide the department, through the NMLS, with the new physical address within five business days of the change.(5)Must I notify the department if my designated broker leaves, or is no longer my designated broker? Yes. You must notify the department, through NMLS, within five business days of the loss of or change of status of your designated broker. See WAC 208-660-180(3).(6)If I am a registered agent under the act, must I notify the department if I resign? Yes. You must provide the department with your statement of resignation letter at least thirty-one days prior to the intended effective date. You must also provide a copy of the resignation letter to the licensed mortgage broker. The department will terminate your appointment thirty-one days after receiving your resignation letter.(7)What are my responsibilities when I sell my business?(a) At least thirty days prior to the effective date of sale, you must notify the department of the pending sale by completing the following: Notify the department in writing and provide requested information. At the effective date of sale, update and file all required information through the NMLS for your main and any branch offices, including updating information about the location of your books and records.(b) You must give written notice to borrowers whose applications or loans are in process, advising them of the change in ownership.(c) You must give written notice to third party providers that have or will provide services on loans in process, and all third-party providers you owe money to, bringing accounts payable current.(d) You must reconcile the trust account and return any funds to the borrowers or others to whom they belong, or transfer funds into a new trust account at the borrower's direction. If excess funds still remain and are unclaimed, follow the procedures provided by the department of revenue's unclaimed property division.(8)Must I notify the department if I cease doing business in this state? Yes. You must notify the department within twenty days after you cease doing business in the state by updating your MU1 record through the NMLS.(9)Must I notify the department of changes to my trust account? Yes. You must notify the department within five business days of any change in the status, location, account number, or other particulars of your trust account, made by you or the federally insured financial institution where the trust account is maintained. A change in your trust account includes the addition of a trust account.(10)What must I do if my licensed mortgage broker company files for bankruptcy?(a) Notify the director within ten business days after filing the bankruptcy.(b) Respond to the department's request for information about the bankruptcy.(11)If I am a designated broker and file for personal bankruptcy, what are my reporting responsibilities? A designated broker must notify the department in writing within ten business days of filing for bankruptcy protection.(12)If I am a designated broker and file for personal bankruptcy, what action may the department take? The director may require the licensed mortgage broker to replace you with another designated broker.(13)If I am a loan originator and file for personal bankruptcy, what are my reporting responsibilities? A licensed loan originator must notify the director in writing within ten business days of filing for bankruptcy protection.(14)If I am a loan originator and file for personal bankruptcy, what action may the department take? Depending on the circumstances, the director may revoke or condition your license. (15)When may I apply for a license after surrendering one due to my personal bankruptcy filing? If you surrendered your license, you may apply for a license at any time. However, the department may deny your license application for three years after the bankruptcy has been discharged provided that no new bankruptcies have occurred or are in progress.(16)Who in the mortgage broker company must notify the department if they are charged with or convicted of a crime? Licensees, whether on active or inactive license status, must notify the department in writing within ten business days of being:(a) Charged by indictment or information with any felony, or a gross misdemeanor involving dishonesty or financial misconduct in any jurisdiction.(b) Convicted of any felony, or any gross misdemeanor involving dishonesty or financial misconduct in any jurisdiction.(c) Convicted of any felony involving fraud, dishonesty, breach of trust, or money laundering in any jurisdiction.(d) Convicted outside of Washington for any crime that if charged in Washington would constitute a felony, or gross misdemeanor for dishonesty or financial misconduct.(17)Who in the mortgage broker company must notify the department if they are the subject of an administrative enforcement action? Licensees, whether holding active or inactive licenses, must notify the department in writing within ten business days of the occurrence if:(a) Charged with any violations by an administrative authority in any jurisdiction; or(b) The subject of any administrative action, including a license revocation action, in any jurisdiction.Wash. Admin. Code § 208-660-400
Amended by WSR 13-24-023, filed 11/22/13, effective 1/1/2014Amended by WSR 16-08-027, Filed 3/30/2016, effective 4/30/2016Amended by WSR 19-21-142, Filed 10/22/2019, effective 11/24/2019Statutory Authority: Chapter 43.320 RCW and RCW 19.146.223. 12-18-048, § 208-660-400, filed 8/29/12, effective 11/1/12. Statutory Authority: RCW 43.320.040, 19.146.223, and 2009 c 528. 09-24-091, § 208-660-400, filed 12/1/09, effective 1/1/10. Statutory Authority: RCW 43.320.040, 19.144.070, 2008 c 109. 09-01-156, § 208-660-400, filed 12/23/08, effective 1/23/09. Statutory Authority: RCW 43.320.040, 19.146.223. 08-05-126, § 208-660-400, filed 2/20/08, effective 3/22/08. Statutory Authority: RCW 43.320.040, 19.146.223, 2006 c 19. 06-23-137, § 208-660-400, filed 11/21/06, effective 1/1/07.