WA Consumer Loan Companies Making Reverse Mortgages

WA Consumer Loan Companies Making Reverse Mortgages
EHB 1311 (PDF)* regulating reverse mortgages became effective July 26, 2009. While the department is conducting rulemaking on the provisions that create an approval process for proprietary reverse mortgage products, all provisions of the bill are now effective including the provisions, sections 12 and 13 that allow consumer loan companies to make HECMs.

If you have any questions, contact Cindy Fazio at 360-902-8800

Brokering WA Reverse Mortgages
License holders under both the Consumer Loan Act (CLA) and Mortgage Broker Practices Act (MBPA) can broker reverse mortgages to entities exempt from the CLA (nationally chartered entities). The lending entity must be exempt from the CLA due to RCW 31.04.125, a provision in the CLA that prohibits the compounding of interest on loans secured by real estate. Examples of exempt entities are Washington chartered banks, credit unions, their affiliates or subsidiaries and nationally chartered banks, credit unions, or their affiliates or subsidiaries

Contact Cindy Fazio, 360-902-8800 if you have questions.