Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Consumer Protection & Business Committee
SB 5077
Brief Description: Providing authority to licensed companies to allow licensed mortgage loan originators to work from their residences without the company licensing the residence as a branch office of the company.
Sponsors: Senators Dozier, Mullet, Brown, Das, Warnick and Wilson, C.; by request of Department of Financial Institutions.
Brief Summary of Bill
  • Allows mortgage loan originators to work from home under certain circumstances.
Hearing Date: 3/10/21
Staff: Serena Dolly (786-7150).
Background:

The Department of Financial Institutions (DFI) licenses and regulates mortgage loan originators.  A mortgage loan originator is a person who takes residential mortgage loan applications, offers or negotiates the terms of residential mortgage loans, or performs residential loan modification services.  A mortgage loan originator must originate loans from a licensed location, and originating a mortgage loan from an unlicensed residence is a violation of the Consumer Loan Act.
Summary of Bill:

Mortgage loan originators may originate loans from their unlicensed residences so long as they comply with all state and federal information security requirements and any other requirements established by rule.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.