Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Affiliate" means any person who directly or indirectly
through one or more intermediaries, controls, or is controlled
by, or is under common control with another person.
(2) "Application" means the same as in Regulation X, Real
Estate Settlement Procedures, 24 C.F.R. Sec. 3500.
(3) "Borrower" means any person who consults with or retains
a mortgage broker or loan originator in an effort to obtain or
seek advice or information on obtaining or applying to obtain a
residential mortgage loan for himself, herself, or persons
including himself or herself, regardless of whether the person
actually obtains such a loan.
(4) "Computer loan information systems" or "CLI system"
means a real estate mortgage financing information system that
facilitates the provision of information to consumers by a
mortgage broker, loan originator, lender, real estate agent, or
other person regarding interest rates and other loan terms
available from different lenders.
(5) "Department" means the department of financial
institutions.
(6) "Designated broker" means a natural person designated as
the person responsible for activities of the licensed mortgage
broker in conducting the business of a mortgage broker under this
chapter and who meets the experience and examination requirements
set forth in RCW 19.146.210(1)(e).
(7) "Director" means the director of financial institutions.
(8) "Employee" means an individual who has an employment
relationship with a mortgage broker, and the individual is
treated as an employee by the mortgage broker for purposes of
compliance with federal income tax laws.
(9) "Federal banking agencies" means the board of governors
of the federal reserve system, comptroller of the currency,
director of the office of thrift supervision, national credit
union administration, and federal deposit insurance corporation.
(10) "Independent contractor" or "person who independently
contracts" means any person that expressly or impliedly contracts
to perform mortgage brokering services for another and that with
respect to its manner or means of performing the services is not
subject to the other's right of control, and that is not treated
as an employee by the other for purposes of compliance with
federal income tax laws.
(11)(a) "Loan originator" means a natural person who for
direct or indirect compensation or gain, or in the expectation of
direct or indirect compensation or gain (i) takes a residential
mortgage loan application for a mortgage broker, or (ii) offers
or negotiates terms of a mortgage loan. "Loan originator" also
includes a person who holds themselves out to the public as able
to perform any of these activities. "Loan originator" does not
mean persons performing purely administrative or clerical tasks
for a mortgage broker. For the purposes of this subsection,
"administrative or clerical tasks" means the receipt, collection,
and distribution of information common for the processing of a
loan in the mortgage industry and communication with a borrower
to obtain information necessary for the processing of a loan. A
person who holds himself or herself out to the public as able to
obtain a loan is not performing administrative or clerical tasks.
(b) "Loan originator" does not include a person or entity
that only performs real estate brokerage activities and is
licensed or registered in accordance with applicable state law,
unless the person or entity is compensated by a lender, a
mortgage broker, or other mortgage loan originator or by any
agent of such a lender, mortgage broker, or other mortgage loan
originator. For purposes of this chapter, the term "real estate
brokerage activity" means any activity that involves offering or
providing real estate brokerage services to the public,
including:
(i) Acting as a real estate agent or real estate broker for
a buyer, seller, lessor, or lessee of real property;
(ii) Bringing together parties interested in the sale,
purchase, lease, rental, or exchange of real property;
(iii) Negotiating, on behalf of any party, any portion of a
contract relating to the sale, purchase, lease, rental, or
exchange of real property, other than in connection with
providing financing with respect to such a transaction;
(iv) Engaging in any activity for which a person engaged in
the activity is required to be registered or licensed as a real
estate agent or real estate broker under any applicable law; and
(v) Offering to engage in any activity, or act in any
capacity, described in (b)(i) through (iv) of this subsection.
(c) "Loan originator" does not include a person or entity
solely involved in extensions of credit relating to timeshare
plans, as that term is defined in section 101(53D) of Title 11,
United States Code.
(12) "Loan processor" means an individual who performs
clerical or support duties as an employee at the direction of and
subject to the supervision and instruction of a person licensed,
or exempt from licensing, under chapter 19.146 RCW.
(13) "Lock-in agreement" means an agreement with a borrower
made by a mortgage broker or loan originator, in which the
mortgage broker or loan originator agrees that, for a period of
time, a specific interest rate or other financing terms will be
the rate or terms at which it will make a loan available to that
borrower.
(14) "Mortgage broker" means any person who for compensation
or gain, or in the expectation of compensation or gain (a)
assists a person in obtaining or applying to obtain a residential
mortgage loan or (b) holds himself or herself out as being able
to assist a person in obtaining or applying to obtain a
residential mortgage loan.
(15) "Mortgage loan originator" has the same meaning as
"loan originator."
(16) "Nationwide mortgage licensing system and registry"
means a mortgage licensing system developed and maintained by the
conference of state bank supervisors and the American association
of residential mortgage regulators for the licensing and
registration of mortgage loan originators.
(17) "Person" means a natural person, corporation, company,
limited liability corporation, partnership, or association.
(18) "Principal" means any person who controls, directly or
indirectly through one or more intermediaries, or alone or in
concert with others, a ten percent or greater interest in a
partnership, company, association, or corporation, and the owner
of a sole proprietorship.
(19) "Residential mortgage loan" means any loan primarily
for personal, family, or household use secured by a mortgage or
deed of trust on residential real estate upon which is
constructed or intended to be constructed a single family
dwelling or multiple family dwelling of four or less units.
(20) "S.A.F.E. act" means the secure and fair enforcement
for mortgage licensing act of 2008, or Title V of the housing and
economic recovery act of 2008 ("HERA"), P.L. 110-289, effective
July 30, 2008.
(21) "Third-party provider" means any person other than a
mortgage broker or lender who provides goods or services to the
mortgage broker in connection with the preparation of the
borrower's loan and includes, but is not limited to, credit
reporting agencies, title companies, appraisers, structural and
pest inspectors, or escrow companies.
(22) "Unique identifier" means a number or other identifier
assigned by protocols established by the nationwide mortgage
licensing system and registry.
[2009 c 528 § 1; 2008 c 78 § 3; 2006 c 19 § 2; 1997 c 106 § 1; 1994 c 33 § 3; 1993 c 468 § 2; 1987 c 391 § 3.]
NOTES:
Effective date -- License requirement -- 2009 c 528: "(1) In
order to facilitate an orderly transition to licensing and
minimize disruption in the mortgage marketplace, sections 4, 6
through 9, 11, 12, 14, and 17 [of this act] are effective January
1, 2010.
(2) In order to facilitate an orderly transition to
licensing and minimize disruption in the mortgage marketplace,
mortgage loan originators who were previously exempt as exclusive
agents under RCW 19.146.020(1)(a)(ii) must obtain a mortgage loan
originator license under this chapter before July 1, 2010."
[2009 c 528 § 19.]
Implementation -- 2009 c 528: "The director of financial institutions or the director's designee may take the actions necessary to ensure this act is implemented on July 1, 2010." [2009 c 528 § 20.]
Severability -- 2008 c 78: See note following RCW 31.04.025.
Severability -- 1997 c 106: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [1997 c 106 § 22.]
Adoption of rules -- Severability -- 1993 c 468: See notes following RCW 19.146.0201.
Effective dates -- 1993 c 468: See note following RCW 19.146.200.