Wash. Admin. Code § 208-660-008 - Exemptions
(1)
Who is
exempt from all provisions of the act? Any person doing business under
the laws of the state of Washington or the United States and any federally
insured depository institution doing business under the laws of any other state
relating to commercial banks, bank holding companies, savings banks, trust
companies, savings and loan associations, credit unions, insurance companies,
or real estate investment trusts as defined in
26 U.S.C. Sec.
856 and the affiliates, subsidiaries, and
service corporations thereof.
(2)
Who is exempt from licensing as a mortgage loan originator?
(a) Any individual who offers or negotiates
terms of a residential mortgage loan with or on behalf of an immediate family
member of the individual; or
(b)
Any individual who offers or negotiates terms of a residential mortgage loan
secured by a dwelling that served as the individual's residence.
(3)
If I am licensed as an
insurance agent under
RCW
48.17.060, must I have a separate license to
act as a loan originator or mortgage broker? Yes. You will need a
separate license as a loan originator or mortgage broker if you are a licensed
insurance agent and you do any of the following:
(a) Take a residential mortgage loan
application for a mortgage broker;
(b) Offer or negotiate terms of a mortgage
loan for direct or indirect compensation or gain, or in the expectation of
direct or indirect compensation or gain;
(c) Assist a person in obtaining or applying
to obtain a residential mortgage loan, for compensation or gain; or
(d) Hold yourself out as being able to
perform any of the above services.
(4)
Are insurance companies exempt from
the Mortgage Broker Practices Act? Yes. Insurance companies authorized
to transact the business of insurance in this state by the Washington state
office of the insurance commissioner are exempt from the Mortgage Broker
Practices Act.
(5)
As an
attorney, must I have a mortgage broker or loan originator license to assist a
person in obtaining or applying to obtain a residential mortgage loan in the
course of my practice?
(a) If you are
an attorney licensed in Washington and if the mortgage broker activities are
incidental to your professional duties as an attorney, you are exempt from the
Mortgage Broker Practices Act under
RCW
19.146.020(1)(c).
(b) Whether an exemption is available to you
depends on the facts and circumstances of your particular situation. For
example, if you hold yourself out publicly as being able to perform the
services of a mortgage broker or loan originator, or if your fee structure for
those services is different from the customary fee structure for your
professional legal services, the department will consider you to be principally
engaged in the mortgage broker business and you will need a mortgage broker or
loan originator license before performing those services. A "customary" fee
structure for the professional legal service does not include the receipt of
compensation or gain associated with assisting a borrower in obtaining a
residential mortgage loan on the property.
(6)
As a licensed real estate broker or
salesperson, must I have a mortgage broker or loan originator license when I
assist the purchaser in obtaining financing for a residential mortgage loan
involving a bona fide sale of real estate? You are exempt from the act
under RCW
19.146.020(1)(e) if you only
receive the customary real estate commission in connection with the
transaction. A "customary" real estate commission does not include receipt of
compensation or gain associated with the financing of the property. A
"customary" real estate commission only includes the agreed upon commission
designated in the listing or purchase and sale agreement for the bona fide sale
of the subject property.
(7)
Are independent contractor loan originators exempt from licensing?
No. An independent contractor working as a loan originator must hold a loan
originator license.
(8)
What
other persons or entities are exempt from the Mortgage Broker Practices
Act?
(a) Any person doing any act
under order of any court except for a person subject to an injunction to comply
with any provision of the act or any order of the director issued under the
act.
(b) The United States of
America, the state of Washington, any other state, and any Washington city,
county, or other political subdivision, and any agency, division, or corporate
instrumentality of any of these entities in this subsection (b).
(c) Registered mortgage loan originators, or
any individual required to be registered, employed by entities exempt from the
act.
(d) A manufactured or modular
home retailer employee who performs purely administrative or clerical tasks and
who receives only the customary salary or commission from the employer in
connection with the transaction.
(9)
When is a CLI provider exempt from
the licensing requirements of the act? See WAC
208-660-143.
Notes
Statutory Authority:
RCW
43.320.040,
19.146.223, and
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.