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Can you summarize Chapter 208-660 WAAC?
Financial Institutions, Department of (See also Titles 50, 419, and 460) > Mortgage brokers and loan originatorsLicensing.
Short Summary
This document outlines the prohibited practices in the mortgage broker and loan originator industry. It applies to mortgage brokers and loan originators and aims to prevent fraudulent and deceptive practices. The prohibited practices include employing schemes to defraud or mislead borrowers or lenders, engaging in unfair or deceptive practices, obtaining property by fraud or misrepresentation, soliciting contracts with borrowers based on ‘best efforts’ to obtain a loan without actually obtaining one, charging discount points without reducing the interest rate, failing to disclose payment components in residential mortgage loans, making false statements or omissions in applications or documents, filing liens without legal basis, coercing or threatening borrowers, failing to make required disclosures, making false or deceptive statements about loan terms, engaging in bait and switch advertising, engaging in unfair or deceptive advertising practices, and abandoning records. The document also prohibits certain practices when providing residential mortgage loan modification services and requires compliance with federal guidelines on nontraditional mortgage loan product risks and subprime lending. Additionally, it provides guidelines for disclosure of mortgage broker fees and restrictions on charging fees exceeding the initially disclosed amount. The document concludes by stating that violations of the act can result in criminal penalties, and knowingly withholding or destroying information is a felony offense.
Whom does it apply to?
The document applies to mortgage brokers and loan originators.
What does it govern?
The document outlines the prohibited practices in the mortgage broker and loan originator industry, including fraudulent and deceptive practices. It also provides guidelines for disclosure of mortgage broker fees and restrictions on charging fees exceeding the initially disclosed amount.
What are exemptions?
No exemptions are mentioned in this document.
What are the Penalties?
The document states that violations can result in various sanctions, including fines, license revocation or suspension, and business practice prohibition. It also mentions that violations of the act can result in criminal penalties, and knowingly withholding or destroying information is a felony offense.
Jurisdiction
Washington