Homebridge will make the agreement available to the borrower (s) for all blocked loans A significant rule change includes the addition of WAC 208-620-510 (5), which provides for an additional advertising requirement in the event of an interest rate freeze. The rule states that a borrower must benefit from a further locking of interest rates within three working days following a change in a blocked interest rate. In addition, “changes to a blocked interest rate can only take place if the borrower claims the royalty or for valid reasons such as changes in the value of the loan, credit notes or other credit factors that have a direct impact on pricing. Extensions and blockages are also considered good reasons to change a previously blocked interest rate. The proposed amendments, which affect MLOs, include additional advertising obligations for interest rate bans. Under the proposed amendments, MLOs must re-lock interest rates to a borrower within three business days of an interest-related change. Valid reasons for changing a blocked interest rate include changes in the value of the credit, credit valuation or other factors that may have a direct impact on pricing. The amendments will also allow MLOs to take out an advance penalty or a fee for a variable rate residential loan, provided that “the penalty or fee expires at least sixty days before the initial reoccentation period.” The amendments include that a credit processor may use files from an unauthorized storage location, provided that the processor accesses files directly from the licensed mortgage broker`s main computer system, that it does not perform any of the activities of a licensed MLO, and that the authorized MLO has protective measures to protect borrowers` information. The NDC/EB is still responsible for making the agreement available to borrowers within three (3) working days following the interest rate freeze and providing Homebridge with a copy of the signed agreement. The State of Washington requires borrowers to receive disclosure of the Lock Agreement Rate within three (3) business days from the date the interest rate is locked. The Washington Department of Financial Institutions has adopted rules amended under the Consumer Loan Act (WAC 208-620), as by Wash. Rev. Code Ann. No.
43.320.040 and 31.04.165, with a date effective November 24, 2019. The amendments are intended to implement amendments to the federal safe law, with federal law requiring individual mortgage lenders to be licensed. For more information on the Consumer Loan Act Rulemaking, click here. The list of Homebridge-approved e-sign providers is attached as a reference (see PDF) and has also been published on the Brokerage Resources page under various non-delegated correspondents/bank transactions. If you have any questions about this article, please contact DocMagic`s compliance department.