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WAC 208-660-250: Designated brokers—General


Published: 2015

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WACs > Title 208 > Chapter 208-660 > Section 208-660-250











208-660-195    

208-660-260







Agency filings affecting this section







WAC 208-660-250









Designated brokers—General.









(1) How do I become a designated broker?

(a) Be eighteen years or older.
(b) Have a high school diploma, an equivalent to a high school diploma, or two years experience in the industry in addition to the experience required in (e) of this subsection. The experience must meet the criteria in (e) of this subsection.
(c) You must pass the Washington designated broker test. See WAC 208-660-260, Designated brokers—Testing. If you will originate loans, you must also take and pass the loan originator test and apply for and receive a loan originator license.
(d) You must be appointed to the designated broker position by the licensed mortgage broker through an application and approval process with the department and the NMLS.
(e) You must have a minimum of two years experience lending or originating residential mortgage loans.
(i) The work experience must be in one or more of the following, within the last five years:
(A) As a mortgage broker or designated broker of a mortgage broker for a minimum of two years; or
(B) As a mortgage banker, responsible individual, or manager of a mortgage banking business; or
(C) As a loan originator with responsibility primarily for originating loans secured by a lien on residential real estate; or
(D) As a branch manager of a lender with responsibility primarily for loans secured by a lien on residential real estate; or
(E) As a manager or supervisor of mortgage loan originators; or
(F) As a mortgage processor, underwriter, or quality control professional; or
(G) As a regulator, examiner, investigator, compliance expert, or auditor, whose primary function is the review of mortgage companies and their compliance processes, and the department determines your background is sufficient.
(ii) The work experience must be evidenced by a detailed work history and:
(A) W-2 Federal Income Tax Reporting Forms in the designated broker appointee's name; or
(B) 1099 Federal Income Tax Reporting Forms in the designated broker appointee's name; or
(C) Corporate tax returns signed by the designated broker appointee or corporate officer for a licensed or exempt residential mortgage company; or
(f) In addition to supplying the application information, both you and the licensed mortgage broker must be in good standing with the department; or
(g) Demonstrate financial responsibility, character and general fitness.
(2) How do I demonstrate financial responsibility? The department will review your credit history to determine if you have outstanding judgments (except judgments involving medical expenses); current outstanding tax liens or other government liens and filings; foreclosures within the last three years; or a pattern of seriously delinquent accounts within the past three years.
Specifically, you are not eligible to become a designated broker if you have one hundred thousand dollars or more of tax liens against you at the time of appointment by a licensed mortgage broker.
(3) May I work as the designated broker for more than one company? Yes. You may be the designated broker for more than one licensee after receiving approval from the director.
(4) As the designated broker, must I hold a loan originator's license? Yes. If you perform any of the functions of a loan originator, you must apply for and receive a loan originator license.
(5) May I work as the designated broker for one licensee and a licensed loan originator for another licensee? Yes. If you want to originate loans for a mortgage broker different from the mortgage broker for whom you are the designated broker, you must amend your license information through the NMLS to reflect the new relationship and the second company must sponsor you. Federal law may prohibit a mortgagee from hiring employees who work for more than one mortgage broker or who have multiple employers.
(6) May a designated broker hire employees or independent contractors apart from the employees or independent contractors working for the mortgage broker licensee? No. Only the mortgage broker licensee can have employees or independent contractors. This prohibition against a designated broker having employees or independent contractors includes clerical or administrative personnel whose work is related to the mortgage broker licensee's activities, and loan processors.
(7) As a designated broker, what reporting requirements must I comply with? See WAC 208-660-400, Reporting requirements.
[Statutory Authority: RCW 43.320.040 and 19.146.225. WSR 13-24-023, § 208-660-250, filed 11/22/13, effective 1/1/14. Statutory Authority: Chapter 43.320 RCW and RCW 19.146.223. WSR 12-18-048, § 208-660-250, filed 8/29/12, effective 11/1/12. Statutory Authority: RCW 43.320.040, 19.146.223, and 2009 c 528. WSR 09-24-091, § 208-660-250, filed 12/1/09, effective 1/1/10. Statutory Authority: RCW 43.320.040, 19.144.070, 2008 c 109. WSR 09-01-156, § 208-660-250, filed 12/23/08, effective 1/23/09. Statutory Authority: RCW 43.320.040, 19.146.223. WSR 08-05-126, § 208-660-250, filed 2/20/08, effective 3/22/08. Statutory Authority: RCW 43.320.040, 19.146.223, 2006 c 19. WSR 06-23-137, § 208-660-250, filed 11/21/06, effective 1/1/07.]