There’s a Washington State Mortgage Broker Commission meeting tomorrow, May 7th at the Renton Community Center to discuss the impact of State Senate Bill 6471. This legislation ammends the Consumer Loan Act and Mortgage Broker Practices Act requiring all lenders to become licensed under the Consumer Loan Act (except those licensed under RCW 63.14)
This change in the state law was put in place to close a loophole. Some mortgage brokers were issued an exemption certificate by their regulator, DFI, because they had received approval as a Fannie Mae/Freddie Mac direct lender. Though still subject to the MBPA, these lenders, an estimated 300, were operating with no state regulatory oversight. This loophole is now closed.
Mortgage brokers are complaining loudly that this change will cost their firm lots of money. I would like to see the raw numbers on their estimates.
I will be attending tomorrow’s meeting, and if I can catch a wifi signal, I will blog live.
This does not appear to be a “closed” meeting since DFI is indicating that the room capacity is 100. I received no notice about this meeting, which is odd, since DFI is always very good about notifying all of us via their listserve.
Time: 1:00 PM
Location: Renton Community Center
Address: 1715 Maple Valley Highway, Renton 98057
Driving Directions
Jillayne, when did you get notice of this meeting? I checked DFI’s site last week when I heard “rumors” of it and NOTHING was there…
Hi Rhonda,
I DIDN’T receive any notice from DFI about this meeting, which is kind-of odd. Usually they’re very good about notifying us via their list-serve.
Maybe this is an impromptu meeting set up in advance knowing that we won’t have time to cover this issue in great depth at the regular commission meeting next week on the 13th.
I just noticed the announcement on the broker home page earlier tonight.
http://dfi.wa.gov/cs/mortgage.htm
I’m going to send an email out tonight to my d-base of brokers/originators. I’ve received many emails from the broker community asking for clarification. Perhaps we’ll get some tomorrow.
I just checked DFI’s site…I’d love to know WHEN they added the meeting.
Well, I go there every other day at minimum. It wasn’t there this past weekend, and it’s only Tuesday.
I just posted this on my site…I’m twittering about it and I’m contacting wholesale reps to contact correspondents.
Jillayne, THANK YOU for posting this.
I’m sorry but it really feels like something is trying to be slid by us.
Jillayne, if you really want to do your mortgage broker/correspondent clients a favor, you might consider sending them an email regarding this?
Yes. I’ll send it out tonight.
Thanks again, Jillayne. I’ll see you tomorrow!
Oh boy. No wifi at the center so now I have to go through 9 pages of notes.
Short version: If you’re a pure broker, and do NOT have a
correspondent/warehouse line, you don’t need a CLA license.
If you’re a broker AND ALSO a correspondent lender with a warehouse credit line, you can chose to only go with a
CLA, or maintain both licenses. the MBPA license, and also a CLA
license. Both options have positives and negatives.
Most important next step is to define the word “lender.”
I know how RESPA defines it.
Pure brokers are not lenders.
More later.
I have to make sense of my notes too! I look forward to your post, Jillayne.
I have posted an update as a new blog article, instead of leaving a very long comment on this one.
http://www.raincityguide.com/2008/05/07/a-mortgage-broker-is-not-a-lender/
Jillayne:
Thanks for the shout out about the meeting. It was MOST informative.
There are loads of brokers that still have no idea about this development.
There’s another meeting on Tuesday, May 13 at Bellevue City Hall. RSVPs were required by today…I posted a link on the post Jillayne referenced at #11…
Hey Jillayne, it was nice to sit with you at the Mortgage Brokers Commission Meeting today…so where is your link to your live post? 🙂
Hi Rhonda,
Here’s the link:
http://mortgagefiduciaries.com/2008/05/live-from-the-wa-mortgage-broker-commission-meeting/