(1)
How do I become a designated broker? (a) Be eighteen years or older.
(b) Have a high school diploma, an equivalent to a high school diploma, or two years experience in the industry in addition to the experience required in (e) of this subsection. The experience must meet the criteria in (e) of this subsection.
(c) You must pass the designated broker test. See WAC
208-660-260, Designated brokers -- Testing.
(d) You must be appointed to the designated broker position by the licensed mortgage broker through an application and approval process with the department and the NMLSR.
(e) You must have a minimum of two years experience lending or originating residential mortgage loans.
(i) The work experience must be in one or more of the following, within the last five years:
(A) As a mortgage broker or designated broker of a mortgage broker for a minimum of two years; or
(B) As a mortgage banker, responsible individual, or manager of a mortgage banking business; or
(C) As a loan originator with responsibility primarily for originating loans secured by a lien on residential real estate; or
(D) As a branch manager of a lender with responsibility primarily for loans secured by a lien on residential real estate; or
(E) As a manager or supervisor of mortgage loan originators; or
(F) As a mortgage processor, underwriter, or quality control professional; or
(G) As a regulator, examiner, investigator, compliance expert, or auditor, whose primary function is the review of mortgage companies and their compliance processes, and the department determines your background is sufficient.
(ii) The work experience must be evidenced by a detailed work history and:
(A) W-2 Federal Income Tax Reporting Forms in the designated broker appointee's name; or
(B) 1099 Federal Income Tax Reporting Forms in the designated broker appointee's name; or
(C) Corporate tax returns signed by the designated broker appointee or corporate officer for a licensed or exempt residential mortgage company; or
(f) In addition to supplying the application information, both you and the licensed mortgage broker must be in good standing with the department.
(g)
Financial background. (i) You are not eligible to become a designated broker if you have one hundred thousand dollars or more of tax liens against you at the time of appointment by a licensed mortgage broker.
(ii) You may not be eligible to become a designated broker if your financial background during the two years prior to the appointment application shows a history of unpaid debts.
(2)
May I work as the designated broker for more than one company? Yes. You may be the designated broker for more than one licensee.
(3)
Must the designated broker hold a loan originator's license? Yes. A designated broker approved by the department will be given a loan originator license if they do not already have one. If the designated broker already has a loan originator license, that license will be added to the licensed mortgage broker's list of loan originators.
(4)
May I work as the designated broker for one licensee and a licensed loan originator for another licensee? Yes. If you want to originate loans for a mortgage broker different from the mortgage broker for whom you are the designated broker, you must apply to the department for an additional loan originator license.
(5)
May a designated broker hire employees or independent contractors apart from the employees or independent contractors working for the mortgage broker licensee? No. Only the mortgage broker licensee can have employees or independent contractors. This prohibition against a designated broker having employees or independent contractors includes clerical or administrative personnel whose work is related to the mortgage broker licensee's activities, and loan processors.
(6)
As a designated broker, what reporting requirements must I comply with? See WAC
208-660-400, Reporting requirements.
[Statutory Authority: RCW 43.320.040, 19.144.070, 2008 c 109. 09-01-156, § 208-660-250, filed 12/23/08, effective 1/23/09. Statutory Authority: RCW 43.320.040, 19.146.223. 08-05-126, § 208-660-250, filed 2/20/08, effective 3/22/08. Statutory Authority: RCW 43.320.040, 19.146.223, 2006 c 19. 06-23-137, § 208-660-250, filed 11/21/06, effective 1/1/07.]