The NDC/EB is still responsible for making the agreement available to borrowers within three (3) working days following the interest rate freeze and providing Homebridge with a copy of the signed agreement. The State of Washington requires borrowers to receive disclosure of the Lock Agreement Rate within three (3) business days from the date the interest rate is locked. The proposed amendments, which affect MLOs, include additional advertising obligations with respect to interest rate bans. Under the proposed amendments, MLOs must re-lock interest rates to a borrower within three business days of an interest-related change. Valid reasons for changing a blocked interest rate include changes in the value of the credit, credit valuation or other factors that may have a direct impact on pricing. The amendments will also allow MLOs to take out an advance penalty or a fee for a variable rate residential loan, provided that “the penalty or fee expires at least sixty days before the initial reoccentation period.” The amendments include that a credit processor may use files from an unauthorized storage location, provided that the processor accesses files directly from the licensed mortgage broker`s main computer system, that it does not perform any of the activities of a licensed MLO, and that the authorized MLO has protective measures to protect borrowers` information. On September 24, the Washington State Department of Financial Institutions (DFI) will hold a hearing on the Internal Regulations to consider changes to mortgage originators (MLOs) and provisions for student loan service providers. The proposed amendments will amend the rules affecting the Washington Consumer Loan Act and the Student Brokerage Practices Act, including those relating to the regulation of student loan service providers as part of a final rule that came into effect on January 1. (See the previous info-byte report on the DFI`s acceptance of changes to student loan service providers here.) According to the DFI, the proposed amendments are expected to come into effect on November 24.
The above directive applies to loans submitted to Homebridge on May 20, 2019 or after May 20, 2019. A copy of the AV Rate lockout agreement is attached as a reference and is also published on Homebridge`s website at www.homebridgewholesale.com address on the broker resources page under disclosures required by state, Washington. Non-delegate correspondent/Emergency Banking Transactions If you have any questions, please contact your Account Executive. The list of Homebridge-approved e-sign providers is attached as a reference (see PDF) and has also been published on the Brokerage Resources page in Divers. The proposed amendments also contain several amendments that apply to student credit service providers governed by the Consumer Credit Act, including: (i) licensees who serve student loans to borrowers in the state “may ask the Director to waive or adjust the annual assessment amount”; (ii) licensees are required to disclose their rights to all service members in accordance with the laws and regulations of members of the state and the federal government with respect to their student loans; and (iii) student loan fellows must review all student loan borrowers using the Ministry of Defence database to ensure that borrowers` rights are properly enforced and maintain written policies and procedures for this practice.