Mortgage Loan Originator Issues

A Mortgage Loan Originator [“MLO”] may be pressured by a lender to fill forms out in a certain manner, or even have requirements from another jurisdiction that conflicts with Washington law or presume the lender will provide documents to the borrower when the MLO must still comply with Chapter 19.146 of the RCW and Chapter 208-660 of the WAC. At least one California lender is known to impose requirements that “[l]ender name must be blank” for its loan estimates, which is impermissible in Washington.Know that WAC 208-660-500(3)(h) requires that all information in connection with an application must be filled out and blanks cannot be left when proved to a borrowed unless marked “N/A” if the information is in fact not applicable to the transaction. Doing so may otherwise be a violation of RCW 19.146.0201(2), (6), (8), and (11), at least.Thus, any licensed MLO processing in Washington must take care above and beyond what the lender may be required to do and avoid using any lender that may require the MLO to leave information blank in a loan estimate to be disclosed, at least in Washington.

RCW 19.146.0201WAC 208-660-500