WSR 16-05-067
(Consumer Services Division)
[Filed February 15, 2016, 2:21 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 15-16-025.
Title of Rule and Other Identifying Information: Amending the rules (chapter 208-700 WAC) under the Mortgage Lending Fraud Prosecution Account, RCW 43.320.140.
Hearing Location(s): Department of Financial Institutions, 150 Israel Road S.W., Olympia, WA 98501, (360) 902-8700, on March 22, 2016, at 11 a.m. to 12 noon.
Date of Intended Adoption: March 30, 2016.
Submit Written Comments to: Sara Rietcheck, 150 Israel Road S.W., P.O. Box 41200, Olympia, WA 98504-1200, e-mail, fax (360) 586-5068, by March 14, 2016.
Assistance for Persons with Disabilities: Contact Sara Rietcheck by March 14, 2016, TTY (360) 664-8126 or (360) 902-8786.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: 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 amendments must be made to the rules.
Reasons Supporting Proposal: Specific information provided in the rules is necessary to guide the regulated industries in complying with the laws.
The rules are being amended under the authority of OFM Guidelines 3.a. and e. dated October 12, 2011.
Statutory Authority for Adoption: Chapter 43.320 RCW.
Statute Being Implemented: Chapter 19.144 RCW.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of financial institutions, consumer services, governmental.
Name of Agency Personnel Responsible for Drafting: Cindy Fazio, 150 Israel Road S.W., Olympia, WA 98501, (360) 902-8800; Implementation and Enforcement: Charles Clark, 150 Israel Road S.W., Olympia, WA 98501, (360) 902-0511.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The rule amendments will not impose more than minor costs on the businesses impacted by the proposed rules.
A cost-benefit analysis is not required under RCW 34.05.328. Not applicable to the proposed rules.
February 15, 2015 [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.