Preproposal statement of inquiry was filed as WSR 06-12-059.
Title of Rule and Other Identifying Information: Regulating mortgage brokers and loan originators licensed under chapter 19.146 RCW and implementing chapter 19, Laws of 2006.
Hearing Location(s): State of Washington, House of Representatives, John L. O'Brien Building, Hearing Room C, Olympia, Washington, 98504-0600, on October 26, 2006, at 1:00 - 3:00 p.m.
Date of Intended Adoption: November 21, 2006.
Submit Written Comments to: Jeannette Terry, P.O. Box 41200, 150 Israel Road, Olympia, WA 98504-1200, e-mail email@example.com, fax (360) 586-5068, by October 25, 2006.
Assistance for Persons with Disabilities: Contact Jeannette Terry, P.O. Box 41200, 150 Israel Road, Olympia, WA 98504-1200, by October 9, 2006, TTY (360) 664-8126 or (360) 902-8786.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed rules repeal the old rules. The proposed rules implement the changes to the existing law by chapter 19, Laws of 2006. The new law goes into effect January 1, 2007. Some of the key changes include:
|•||Mortgage broker licenses will expire annually and must be renewed.|
|•||Mortgage brokers must annually report the number and dollar volume of loans made in Washington each year.|
|•||The responsibility of designated brokers to oversee company and loan originator activity is specifically established in the new law.|
|•||Loan originators must have a license to originate loans; the license expires annually.|
|•||Loan originators must complete continuing education courses annually.|
|•||The department may examine mortgage brokers' books and records within the first five years of licensing, including branch offices.|
|•||The director is authorized to investigate for violations or complaints.|
Reasons Supporting Proposal: Chapter 19, Laws of 2006, changed the existing law; the proposed rules implement the changes.
Statutory Authority for Adoption: RCW 43.320.040, 19.146.223, chapter 19, Laws of 2006.
Statute Being Implemented: Chapter 19, Laws of 2006.
Rule is not necessitated by federal law, federal or state court decision.
Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: The department intends to implement these rules prior to the effective date of the act to facilitate the timely licensing of loan originators.
Name of Proponent: Department of financial institutions, governmental.
Name of Agency Personnel Responsible for Drafting: Cindy Fazio, Catherine Mele-Hetter, Deb Bortner, 150 Israel Road, Olympia, WA, (360) 902-8800; Implementation and Enforcement: Chuck Cross, 150 Israel Road, Olympia, WA, (360) 902-8786.
A small business economic impact statement has been prepared under chapter 19.85 RCW.
A copy of the statement may be obtained by contacting Jeannette Terry, P.O. Box 41200, 150 Israel Road, Olympia, WA 98504-1200, phone (360) 902-8786, fax (360) 586-5068, e-mail firstname.lastname@example.org.
A cost-benefit analysis is not required under RCW 34.05.328. Not applicable to the proposed rules.
September 1, 2006
Director, Consumer Services
Reviser's note: The material contained in this filing exceeded the page-count limitations of WAC 1-21-040 for appearance in this issue of the Register. It will appear in the 06-19 issue of the Register.