Mortgage Broker License Information for Washington State

Mortgage brokers help home buyers find a loan to purchase a home. The mortgage broker does not loan money to the home buyer, but instead finds a suitable lender to meet the needs of the buyer. In Washington state, mortgage brokers must meet licensing requirements to offer services to home buyers. Licensing requirements help to protect the public from unqualified mortgage brokers.

Application

Candidates must submit an application that includes the applicant's name, address, Social Security number and birth date. Mortgage brokers submitting an application on behalf of a firm or partnership must supply the information of every partner working in the firm. The state of Washington also requires fingerprints of the individual mortgage broker or all partners in a partnership. The application must include the address of the mortgage broker business in the state.

Criminal Background Check

Washington state conducts a criminal background check on all applicants for a mortgage broker's license. The candidate must have no history of financial misconduct or dishonesty within the seven years prior to filing an application with the state. The state also requires applicants have no history of license suspension or revocation within the last five years.

Experience

Washington requires mortgage broker candidates to have at least two years' experience in the industry. Candidate experience must be within the last five years before applying to the state for a mortgage broker's license. Experience as a mortgage broker, loan originator, mortgage banker, bank manager, mortgage processor or investigator for a mortgage company qualifies the candidate for licensure in the state.

Examination

Washington mortgage brokers must pass an examination to qualify for licensure. Mortgage brokers who will also work as loan originators must pass a national loan originator's examination and state exam as well.

Financial Responsibility

Mortgage brokers must provide evidence of financial responsibility to qualify for a license. To determine financial responsibility, the state will conduct a credit check on the applicant. Candidates with outstanding liens, judgments or foreclosures in the previous three years are not eligible for a mortgage broker's license in Washington.

Surety Bond

Washington mortgage brokers must have a surety bond to work in the state. First-time mortgage brokers must have a surety bond for $20,000 for the first year. During the following years, the surety bond amount is based on the annual volume of loans the mortgage broker handles.

References

• Washington State Legislature: RCW19.146.200 Mortgage Broker or Loan Originator
• Washington State Legislature: RCW 19.146.210 License-Requirements for Issuance
• Washington State Legislature: WAC 208-660-175 Mortgage Brokers-Surety Bond
• Washington State Legislature: WAC 208-660-163 Mortgage Brokers Licensing