Washington State Implements SAFE Act for Mortgage Brokers

On May 18, Washington Governor Christine Gregoire signed HB 1749 regarding the regulation of mortgage broker business practices in order to assure compliance with the federal Safe and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). The bill amends the Mortgage Broker Practices Act to implement the mandate of the SAFE Act by providing for the licensing of all mortgage loan originators under the Nationwide Mortgage Licensing System. In addition to technical amendments, the bill prescribes loan originator requirements relating to licensing, prior and continuing education, testing, minimum net worth, and surety bond coverage. This is the second piece of SAFE Act implementing legislation signed by Governor Gregoire. In April, the Governor signed HB 1621, which relates to the business practices of Washington consumer loan companies. Both bills become effective July 1, 2010, with certain provisions becoming effective January 1, 2010.