WSR 16-08-030 PERMANENT RULES DEPARTMENT OF FINANCIAL INSTITUTIONS (Division of Consumer Services) [Filed March 30, 2016, 8:45 a.m., effective April 30, 2016] Effective Date of Rule: Thirty-one days after filing.
Purpose: The rules must be amended to be consistent with the definition of mortgage lending process in chapter 229, Laws of 2015 (amending RCW 19.144.010). Having consistent definitions in the rules will better inform industry about the activities constituting mortgage fraud. Other technical changes must be made for clarity and consistency.
The rules are being amended under the authority of OFM Guidelines 3.a. and e. dated October 12, 2011.
Citation of Existing Rules Affected by this Order: Amending WAC 208-700-010.
Statutory Authority for Adoption: Chapter 43.320 RCW.
Adopted under notice filed as WSR 16-05-067 on February 15, 2016.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 1, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Date Adopted: March 30, 2016.
Charles Clark, Director
Division of Consumer Services
AMENDATORY SECTION (Amending WSR 04-02-008, filed 12/29/03, effective 1/29/04)
WAC 208-700-010 Definitions.
The definitions in this section apply throughout the chapter unless the context clearly requires otherwise.
(1) "Department" means the department of financial institutions.
(2) "Director" means the director of the department.
(3) "Mortgage lending fraud prosecution account" or "account" means the account established under RCW 36.22.181, ((40.320.140,)) and ((43.320.1401)) 43.32.140 (chapter 289, Laws of 2003).
(4) "Mortgage lending process" means the process through which a person seeks or obtains a residential mortgage loan or residential mortgage loan modification including, but not limited to, solicitation, application, or origination((,)); negotiation of terms((,)); third-party provider services((,)); underwriting((,)); signing and closing((,)); and funding of the loan. Documents involved in the mortgage lending process include, but are not limited to, uniform residential loan applications or other loan applications, appraisal reports, settlement statements, supporting personal documentation for loan applications such as W-2 forms, verifications of income and employment, bank statements, tax returns, payroll stubs, and any required disclosures.
(5) "Person" means a natural person, corporation, company, limited liability corporation, partnership, or association.
(6) "Prosecutorial agency" means the office of the Washington attorney general, the office of the United States Attorney, or the office of any county prosecutor in the state of Washington.
(7) "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 fewer units.
(8) "Third-party provider" means any person other than a mortgage broker or lender who provides goods or services in connection with the preparation of a borrower's loan and includes, but is not limited to, credit reporting agencies, title companies, appraisers, structural and pest inspectors, or escrow companies.
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