(1)
What does good standing mean? For the purposes of the act and these rules, good standing means that the applicant, licensee, or other person subject to the act demonstrates financial responsibility, character, and general fitness sufficient to command the confidence of the community and to warrant a belief that the business will be operated honestly, fairly, and efficiently within the purposes of the act and these rules. In determining good standing the director will consider the following factors, and any other evidence relevant to good standing as defined in this rule:
(a) Whether the applicant or licensee has paid all fees due to the director.
(b) Whether the licensee has filed their mortgage broker annual report.
(c) Whether the licensee has filed and maintained the required surety bond or had its surety bond canceled or revoked for cause.
(d) Whether the licensee has maintained a designated broker in compliance with the act and these rules.
(e) Whether the applicant, licensee, or other person subject to the act has had any license, or any authorization or ability to do business under any similar statute of this or any other state, suspended, revoked, or restricted within the prior five years.
(f) Whether the applicant, licensee, or other person subject to the act has been convicted of a gross misdemeanor involving dishonesty or financial misconduct, or a felony, within the prior seven years.
(g) Whether the licensee or other person subject to the act, is, or has been subject to a cease and desist order or an injunction issued pursuant to the act, or the Consumer Protection Act, or has been found through an administrative, civil, or criminal proceeding to have violated the provisions of the act or rules, or the Consumer Protection Act, chapter
19.86 RCW.
(h) Whether the director has filed a statement of charges, or there is an outstanding order by the director to cease and desist against the licensee or other person subject to the act.
(i) Whether there is documented evidence of serious or significant complaints filed against the licensee, or other person subject to the act, and the licensee or other person subject to the act has been notified of the complaints and been given the opportunity to respond.
(j) Whether the licensee has allowed the licensed mortgage broker business to deteriorate into a condition that would result in denial of a new application for a license.
(k) Whether the licensee, or other person subject to the act has failed to comply with an order, directive, subpoena, or requirement of the director or director's designee, or with an assurance of discontinuance entered into with the director or director's designee.
(l) Whether the licensee or other person subject to the act has interfered with an investigation or disciplinary proceeding by willful misrepresentation of facts before the director or director's designee, or by the use of threats or harassment against a client, witness, employee of the licensee, or representative of the director for the purpose of preventing them from discovering evidence for, or providing evidence in, any disciplinary proceeding or other legal action.
(2)
Under what circumstances may the department conduct a good standing review of an applicant, mortgage broker licensee, designated broker, or exempt mortgage broker? The department may conduct a good standing review when:
(a) Processing an application for a new mortgage broker branch office license.
(b) Processing an application for appointment of a different designated broker (both the licensed mortgage broker, including those individuals to whom the license was granted, and the proposed designated broker must meet good standing).
(c) Processing a request for recognition as an exempt mortgage broker under RCW
19.146.020(4).
(3)
When will an applicant, licensee, or other person subject to the act receive notice from the department of their failure to meet a determination of good standing? The department will notify the applicant, licensee, or other person subject to the act that they have failed to meet the department's good standing requirement within ten business days of the department's receipt of any application or request that requires a determination of good standing. See subsection (2) of this section.
(4)
What recourse does an applicant, licensee, or other person subject to the act have when the department has determined that they are not in good standing? The applicant, licensee, or other person subject to the act may request a brief adjudicative proceeding under the Administrative Procedure Act, chapter
34.05 RCW, to challenge the department's determination.
(5)
What department determinations may be challenged through a brief adjudicative proceeding? Subsection (1)(a) through (l) of this section may be challenged through a brief adjudicative process.
(6)
What specific sections of the Administrative Procedure Act are adopted by the director to administer brief adjudicative proceedings? The director adopts RCW
34.05.482 through
34.05.494 to administer brief adjudicative proceedings requested by an applicant or licensee, or conducted at the director's discretion.
(7)
Who conducts the brief adjudicative proceeding? Brief adjudicative proceedings are conducted by a presiding officer designated by the director. The presiding officer must have department expertise in the subject matter, but must not have personally participated in the department's determination of good standing, or work in the department's division of consumer services, or such other division within the department delegated by the director to oversee implementation of the act and these rules.
(8)
When and how will the presiding officer issue a decision? Within ten business days of the final date for submission of materials, or oral argument, if any, the presiding officer must make a written initial order.
[Statutory Authority: RCW 43.320.040, 19.146.223. 08-05-126, § 208-660-007, filed 2/20/08, effective 3/22/08. Statutory Authority: RCW 43.320.040, 19.146.223, 2006 c 19. 06-23-137, § 208-660-007, filed 11/21/06, effective 1/1/07.]