This course is designed to prepare candidates to take the exam to become a state-licensed mortgage loan originator in Washington under the Washington State Department of Financial Institutions (DFI). This 4-hour course covers Washington specific rules and regulations, and is required as part of the 20 hours of prelicensure education needed to become an Washington mortgage loan originator.

Topics and Learning Objectives

This course consists of four modules and a final exam:

1. Mortgage Lending Licensing (45 minutes)
2. Maintaining a License (45 minutes)
3. Security Devices (45 minutes)
4. State Conduct Rules (45 minutes)
5. Final Exam (20 minutes)

Total study time: 4 clock hours

Module 1: Mortgage Lending Licensing

In this chapter we'll introduce you to the government agency that oversees the mortgage industry in our state, the Washington State Department of Financial Institutions (DFI). We'll also introduce you to the Mortgage Broker Practices Act (MBPA) and the Consumer Loan Act (CLA), the state laws the define the authorization requirements for license applicants as well as the conduct of licensed mortgage loan originators and mortgage brokers.

Module 2: Maintaining A License

After being granted a license by the Department of Financial Institutions, a licensee is required to conduct themselves under the rules of the department. In this chapter we'll explain how to renew a license, the record keeping requirements expected of licensees, and how to comply with DFI requirements. Trust account regulations will also be covered, outlining a mortgage broker's responsibilities when handling funds given to them in trust. Licensees also have reporting responsibilities to the DFI when information about their license status changes such as legal name changes, email address updates, or if criminal charges have been filed against the licensee.

Module 3: Security Devices

In this chapter we'll break down various types of security devices: promissory notes, deeds of trusts, and mortgages. First we will outline the components of a promissory note and how these notes may be negotiable. Then we'll describe both mortgage and trust deeds, the security interest the lender has in the property, and discuss the differences between these two security instruments. You'll also learn what happens when a borrower's security instrument must be foreclosed because the borrower cannot comply with their promise to repay.

Module 4: State Conduct Rules

In this last chapter, we'll outline the activities and conduct that a licensee cannot participate in under Washington. If the DFI finds a licensee has partaken in activities that harm consumers or the lending industry, the agency has the authority to punish the licensee by imposing fines and removing a licensee's authorization to conduct lending activities in this state. We'll also describe what information must be outlined in writing by a licensee to be disclosed to a consumer or borrower, and identify fees that can be counted towards a licensee's commission for successfully walking a borrower through their loan.

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID, but don't remember what it is:

• Login into NMLS,
• Click on the Composite View tab, then
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center