July 1 - December 31, 2011
DIVISION OF CONSUMER SERVICES
• Amendments to chapter 208-660 WAC relating to the Mortgage Broker Practices Act, chapter 19.146 RCW. An amendment is necessary to fix an inconsistency with an existing federal law. The inconsistency is in the mortgage loan originator license renewal process. The inconsistency puts the state law at odds with the federal law and could result in a mortgage loan originator renewing their license under lower standards than were required to obtain the original license. These rules fall within the OFM guidelines of "required by federal or state law" implementing the governor's executive order suspending noncritical rule making.
DIVISION OF SECURITIES
• Chapter 460-24A WAC amendments to rules relating to investment advisers. The Dodd-Frank Wall Street Reform and Consumer Protection Act raised the threshold for federal jurisdiction from $25 million AUM to $100 million AUM. This will result in Washington gaining approximately three hundred new IA licensees that switch from federal to state jurisdiction, an increase of sixty percent. Rule making will be necessary to address regulatory issues presented by these new licensees. These rules fall within the OFM guidelines of "required by federal or state law" implementing the governor's executive order suspending noncritical rule making.
• Chapter 460-33A WAC amendments to rules relating to mortgage paper securities. These rules regulate mortgage broker-dealers which make "hard-money" loans and sell interests in those loans to investors. These companies have been significantly impacted by the economic downturn and two have been placed into receivership as a result of petitions by the division. As the only agency regulating these companies, it is important that the division regularly examine and update its rules to address regulatory concerns and market changes. The securities division has been working with its mortgage broker-dealer registrants for several months on revisions to the mortgage papers rules and believes that most of the amendments it proposes will be supported by registrants. Any rules that are not fully supported by industry will be necessary to protect the public welfare.