WSR 08-09-139

EXPEDITED RULES

DEPARTMENT OF

FINANCIAL INSTITUTIONS

[ Filed April 23, 2008, 8:51 a.m. ]

Title of Rule and Other Identifying Information: The fees section of the rules implementing the Mortgage Broker Practices Act (chapter 19.146 RCW and chapter 208-660 WAC) must be amended to not contravene I-960. The fee section proposed for amendment is WAC 208-660-550.

NOTICE

THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Elizabeth Stancil, Department of Financial Institutions, Division of Consumer Services, P.O. Box 41200, Olympia, WA 98504-1200, (360) 902-8786, estancil@dfi.wa.gov , AND RECEIVED BY June 24, 2008.


Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The fee section of the rules must be amended to not contravene I-960. See the full text of the rules proposed for amendment below.

Reasons Supporting Proposal: If the rules are not amended they would be in opposition to I-960.

Statutory Authority for Adoption: RCW 43.320.040, 19.146.223.

Statute Being Implemented: Chapter 19.146 RCW.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Department of financial institutions, governmental.

Name of Agency Personnel Responsible for Drafting: Cindy Fazio, 150 Israel Road, Tumwater, WA, (360) 902-8800; Implementation and Enforcement: Deborah Bortner, 150 Israel Road, Tumwater, WA, (360) 902-0511.

April 23, 2008

Deborah Bortner, Director

Division of Consumer Services

OTS-1486.1


AMENDATORY SECTION(Amending WSR 08-05-126, filed 2/20/08, effective 3/22/08)

WAC 208-660-550   Department fees and costs.   (1) ((The department intends to increase its fees and costs each year for several bienniums. The department intends to initiate rule making each biennium for this purpose. This rule provides for an automatic annual increase in the rate of fees and costs each fiscal year during the 2007-2009 biennium.

(a) On July 1, 2007, and July 1, 2008, these fees and costs, as increased in the prior fiscal year, will increase by a percentage rate equal to the fiscal growth factor for the then current fiscal year. As used in this section, "fiscal growth factor" has the same meaning as the term is defined in RCW 43.135.025.

(b) The director may round off a rate increase under subsection (1) of this section. However, no rate increase may exceed the applicable fiscal growth factor.

(c) By June 1 of each year, the director will make available a chart of the new rates that will take effect on the immediately following July 1.

(2))) Mortgage broker licenses.


Mortgage broker - license application fee $371.00
Mortgage broker - annual assessment (due upon initial licensing, then an annual renewal fee, per location) $530.00
Mortgage broker late renewal assessment (fifty percent of annual assessment) $265.00
Mortgage broker branch office - license application fee $185.00
Mortgage broker branch office - annual assessment (annual renewal fee, per location) $530.00
Mortgage broker - license amendment No fee
Mortgage broker - change of designated broker $25.00

(((3))) (2) Loan originator licenses.


Loan originator - license application fee $125.00
Loan originator - annual assessment (not due until first renewal; then an annual renewal fee) $125.00
Loan originator late renewal assessment (fifty percent of annual assessment) $62.50
Loan originator - cancel association with any mortgage broker No fee
Loan originator - license amendment - add a mortgage broker relationship $50.00
Loan originator - license amendment - other No fee

When the realignment of license expiration or renewal dates results in a partial year of licensing, the department will impose a proportionate fee structure to accommodate that realignment.

(((4))) (3) Examinations.

(a) In Washington. The department does not charge a licensee located in Washington for the costs of an examination.

(b) Outside of Washington. The department will charge the licensee for travel costs.

(c) If the department hires professionals, specialists, or both to examine an out-of-state licensee, the professional, specialist, or both will be considered examiners for the purpose of billing the licensee for travel costs.

(((5))) (4) Investigations.

(a) The department will charge forty-eight dollars per hour for an examiner's time devoted to an investigation.

(b) The department will bill the licensee for the costs of services from attorneys, accountants, or other professionals or specialists retained by the director to aid in the investigation.

(((6))) (5) Travel costs. If the mortgage business is out-of-state, the department will charge the business the travel costs associated with an examination or investigation. Travel costs include, but are not limited to, transportation costs (airfare, rental cars), meals, and lodging.

(((7))) (6) How is the annual assessment calculated? The assessment is a flat rate per license.

(((8))) (7) How does the department use license application fees? The fees collected by the department are used to pay the costs of administering the act.

[Statutory Authority: RCW 43.320.040, 19.146.223. 08-05-126, 208-660-550, filed 2/20/08, effective 3/22/08. Statutory Authority: RCW 43.320.040, 19.146.223, 2006 c 19. 06-23-137, 208-660-550, filed 11/21/06, effective 1/1/07.]

Washington State Code Reviser's Office