(1)
Who may offer continuing education courses to principals, designated mortgage brokers, and loan originators? Continuing education may be offered by:
(a) Course providers with courses of education approved by the director; or
(b) Course providers with courses of education approved by professional organizations approved by the director.
(2)
What does it mean to offer and administer a course of education? Offering and administering a course of education is the creation of a curriculum and the administrative processes to operate and maintain the curriculum. See the department's approval standards in subsections (7) and (14) of this section.
(3)
What is a "course of education" under the act? A course of education is formal training that satisfies all or part of the continuing education requirements of the act and these rules.
(4)
What is a "course provider" under the act? A course provider is a person or organization that provides continuing education. Course providers may provide education that meets the requirements of the act and these rules by applying for and receiving approval from the department for a specific course of education.
(5)
What is a "professional organization" under the act? A professional organization is an organization with at least ten members created for the primary purpose of furthering the professional interests of its members, protecting the public interest, or both. Education must be an essential element of the professional organization's purpose. A professional organization must have the director's approval to offer and administer courses of education.
(6)
If I am a course provider not affiliated with a professional organization, how do I obtain approval for my courses of education? You must apply to the department for course approval. If the department approves the course, you will be issued a certificate of approval that will be effective for two years from the date of issuance.
(7)
What standard is required and what will the department review when considering approval of continuing education provided by course providers not affiliated with professional organizations? Continuing education courses must provide the course taker with a working knowledge of, and competency in, the subject matter. To ensure this standard, the department will review the following when considering approval of education courses:
(a) The instructor's experience and qualifications;
(b) Whether the instructor or proposed course of education has been approved, denied, or rescinded by the department in the past; and
(c) The course materials and lesson plans for the proposed courses. Each course must run a minimum of three hours; the materials and lesson plans must have the content to support a presentation of this length.
(8)
If I am a course provider with courses of education approved by a professional organization, may I also offer courses of education unaffiliated with the professional organization? Yes. However, your courses of education unaffiliated with the professional organization must be approved by the department.
(9)
May the department rescind approval of a course provider's course of education? Yes. The department may rescind approval of a course of education:
(a) Upon a determination that the course of education does not meet the standards in subsection (7) of this section; or
(b) If the course provider does not provide the required quarterly reports described in subsection (13) of this section.
(10)
What action must a course provider take if notified by the department that its course of education has been rescinded? The course provider must immediately:
(a) Cease advertising or soliciting for the course of education;
(b) Inform registered course takers of the department's rescission of course approval, and cancel the course of education; and
(c) Refund any fees paid by course takers for the course.
(11)
May a course provider appeal the department's decision to deny or rescind course approval? Yes. A course provider may appeal the department's decision to deny or rescind a course. The course provider must appeal the decision to the department within twenty days of being notified by the department of the decision.
(12)
If a course provider has appealed the department's denial or rescission of a course of education, must it still take the immediate action in subsection (10) of this section? Yes. A course provider appealing a department decision about a course of education must comply with subsection (10) of this section.
(13)
I am a course provider who provides approved continuing education courses directly to licensees, or I provide courses with the approval of a professional organization. What reports must I provide to the department? You must provide quarterly reports to the department, in a form prescribed by the director. The reports must be received by the department no later than April 10, July 10, October 10, and January 10 of each year. The reports must contain the following information:
(a) The course taker's name;
(b) The course taker's license number, or Social Security number;
(c) The name of the course;
(d) The date the course was taken; and
(e) Whether the course taker received a certificate of satisfactory completion.
If you provide the reports electronically, the data must be encrypted as prescribed by the director.
(14)
What standards will the department review when considering approving professional organizations to offer and administer courses of education under the act and rules? The department will review the following:
(a) A description of the course of education curriculum that satisfies the content of continuing education under subsection (22) of this section;
(b) Whether the professional organization has sufficient procedures and guidelines to:
(i) Establish a course(s) of education and approve a course provider(s);
(ii) Audit and evaluate an approved course(s) of education and course provider(s);
(iii) Remove courses and providers from the professional organization's curriculum;
(iv) Provide board reconsideration of denial or removal of a course of education or a course provider;
(v) Ascertain the identity of course of education takers;
(vi) Issue certificates of satisfactory completion, that include, at a minimum, the course taker's name, the course provider's name, the course title, and the date of course completion;
(vii) Collect, hold, disburse and refund course of education fees;
(c) Whether the professional organization requires members to adhere to an established code of conduct or ethics.
(15)
Is the department liable for a professional organization's decision to approve, deny, or revoke authorization for a course provider to offer courses of education? No. The department is not liable for a professional organization's decision to approve, deny, or revoke a course provider's authorization to provide courses of education for the professional organization.
(16)
Is the department liable for a course provider's contractual relationship with a professional organization? No. Course providers independently contract with professional organizations and the department is not liable for the consequences of that relationship.
(17)
May the department remove a professional organization's authorization to offer and administer courses of education? Yes. The department may rescind a professional organization's authorization to offer and administer courses of education:
(a) Upon a determination that the professional organization fails to meet subsection (14) of this section; or
(b) If the professional organization fails to provide the required quarterly reports described in subsection (21) of this section.
(18)
What action must a professional organization take if notified by the department that its authorization has been rescinded? The professional organization must immediately:
(a) Cease advertising or soliciting for all courses of education;
(b) Inform registered course takers of the department's rescission of approval, and cancel the courses of education; and
(c) Refund any fees paid by course takers for the courses.
(19)
May a professional organization appeal the department's decision to deny or rescind authorization? Yes. A professional organization may appeal the department's decision to deny or rescind the professional organization's authorization to approve course providers. The professional organization must appeal the decision to the department within twenty days of being notified by the department of the decision.
(20)
If a professional organization has appealed the department's denial or rescission of authorization, must it still take the immediate action in subsection (18) of this section? Yes. A professional organization appealing a department decision about a course provider or course of education must comply with subsection (18) of this section.
(21)
When a professional organization is approved by the department to offer continuing education courses to licensees, and does so, what reports must the professional organization provide to the department? The professional organization must provide quarterly reports to the department, in a form prescribed by the director. The reports must be received by the department no later than April 10, July 10, October 10, and January 10 of each year. The reports must contain the following information:
(a) The course taker's name;
(b) The course taker's license number, or Social Security number if not currently licensed;
(c) The name of the course;
(d) The date the course was taken; and
(e) Whether the course taker received a certificate of satisfactory completion.
If you provide the reports electronically, the data must be encrypted as prescribed by the director.
(22)
How long does department approval for a professional organization to offer continuing education courses last, and may the approval be renewed? Approval of a continuing education course is valid for two years. Approval may be renewed by applying to the director forty-five days prior to expiration of a current approval and providing detailed information about the course(s) and instructor(s) if they are to be changed.
(23)
What topics must be included as continuing education courses? Continuing education courses must include some or all of the topics listed below. Courses may be designed to cover a range of topics or they may focus in detail on a single topic.
(a)
General. (i) Ethics in the mortgage industry.
The responsibilities and liabilities of the profession including instruction on fraud, consumer protection, and fair lending issues.
(ii) Lending standards for nontraditional mortgage products.
(iii) Arithmetical computations common to mortgage lending including without limitation, the computation of annual percentage rate, finance charge, amount financed, payment and amortization.
(b)
Compliance and internal audit standards. Proper use and application of the department's published standards and guidelines for examinations.
Internal audit and compliance practices, standards, methods and procedures.
Developing policies and procedures for regulatory compliance.
Responding to regulatory inquiries, directives, subpoenas and enforcement orders.
Training and supervision of mortgage professionals.
Establishing, managing, reconciling and reviewing a trust account (trust account compliance under the act and these rules).
(c)
Washington law and associated regulations. The Mortgage Broker Practices Act.
The Consumer Protection Act.
The Escrow Agent Registration Act.
The Usury Act.
Unfair practices with respect to real estate transactions (RCW
49.60.222).
Mortgage, deed of trust, and real estate contract statutes set forth in Title
61 RCW.
Real estate and appraisal law, including without limitation, the provisions of chapters
18.85 and
18.140 RCW.
Washington principal and agent law.
Any subsequent act or regulation applying to mortgage brokers.
(d)
Federal law and associated regulations. The Real Estate Settlement Procedures Act.
Truth in Lending Act.
Equal Credit Opportunity Act.
Fair Credit Reporting Act.
Fair Housing Act.
Home Mortgage Disclosure Act.
Community Reinvestment Act.
Gramm-Leach Bliley Act.
Home Ownership Protection Act.
Bank Secrecy Act.
Appraisal regulations.
Underwriting.
The SAFE Act (Title V of the Housing and Economic Reform Act of 2008 ("HERA")) Public Law No. 110-289.
Any subsequent act or regulation applying to mortgage brokers.
(e)
Mortgage services and products. Conventional.
Reverse mortgages.
FHA mortgages.
VA mortgages.
Nonprime mortgages.
Other products or services deemed relevant to continuing education by the department.
(24)
May the department audit or review a course of education? Yes. The department may audit or review any continuing education course by registering for the course or attending the course of education unannounced by presenting the course provider with official identification prior to the start of the course. The department will not be charged any fee for official audit or review of the course of education.
[Statutory Authority: RCW 43.320.040, 19.144.070, 2008 c 109. 09-01-156, § 208-660-600, filed 12/23/08, effective 1/23/09. Statutory Authority: RCW 43.320.040, 19.146.223. 08-05-126, § 208-660-600, filed 2/20/08, effective 3/22/08. Statutory Authority: RCW 43.320.040, 19.146.223, 2006 c 19. 06-23-137, § 208-660-600, filed 11/21/06, effective 1/1/07.]