Mortgage Broker Commission Meeting Tomorrow

Jillayne Schlicke on 05 6, 2008

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

About the Author: Jillayne Schlicke

Jillayne Schlicke researches, writes, and instructs continuing education courses, convention workshops and keynote presentations for the real estate and mortgage industries on a wide variety of topics as CEO of CE Forward, Inc. Jillayne is also the Founder and Executive Director for The National Association of Mortgage Fiduciaries, which serves the mortgage lending industry by raising ethical standards, creating a framework for industry self regulation, providing continuing education classes, and helping the industry prepare for the emergence of fiduciary duties. Jillayne received an M.A. in Psych from Antioch University in Seattle where she studied moral psychology, philosophy, and business ethics and received a B.S. in Business and Systems from the University of Phoenix. Jillayne presents hundreds of classes and workshops each year, has published numerous articles for various publications, is a contributing author and editor on Rain City Guide, has been appointed to 38 professional association chair positions or committees and has received 13 industry awards including "2008 Instructor of the Year" from the Seattle King County Association of Realtors. Contact Jillayne at 206-931-2241 Read Jillayne's stuff on Rain City Guide...

15 Responses to “Mortgage Broker Commission Meeting Tomorrow”

  1. Rhonda Porter
    May 6, 2008 at 7:36 pm

    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…

    Reply
    #317189
  2. Jillayne Schlicke
    May 6, 2008 at 7:42 pm

    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.

    Reply
    #317190
  3. Rhonda Porter
    May 6, 2008 at 7:43 pm

    I just checked DFI’s site…I’d love to know WHEN they added the meeting.

    Reply
    #317191
  4. Jillayne Schlicke
    May 6, 2008 at 7:47 pm

    Well, I go there every other day at minimum. It wasn’t there this past weekend, and it’s only Tuesday.

    Reply
    #317192
  5. Rhonda Porter
    May 6, 2008 at 8:07 pm

    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.

    Reply
    #317195
  6. Rhonda Porter
    May 6, 2008 at 8:15 pm

    Jillayne, if you really want to do your mortgage broker/correspondent clients a favor, you might consider sending them an email regarding this?

    Reply
    #317198
  7. Jillayne Schlicke
    May 6, 2008 at 8:49 pm

    Yes. I’ll send it out tonight.

    Reply
    #317207
  8. Rhonda Porter
    May 6, 2008 at 8:58 pm

    Thanks again, Jillayne. I’ll see you tomorrow!

    Reply
    #317209
  9. Jillayne Schlicke
    May 7, 2008 at 4:54 pm

    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.

    Reply
    #317266
  10. Rhonda Porter
    May 7, 2008 at 5:13 pm

    I have to make sense of my notes too! I look forward to your post, Jillayne.

    Reply
    #317267
  11. Jillayne Schlicke
    May 7, 2008 at 11:05 pm

    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/

    Reply
    #317290
  12. Roger Ingalls
    May 9, 2008 at 7:09 pm

    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.

    Reply
    #317402
  13. Rhonda Porter
    May 9, 2008 at 8:47 pm

    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…

    Reply
    #317405
  14. Rhonda Porter
    May 13, 2008 at 12:31 pm

    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? :)

    Reply
    #317592

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