The State of Washington requires that the disclosure of the Rate Freeze Agreement be made available to the borrower(s) borrower(s) within three (3) business days of the date on which the interest rate is frozen. The proposed changes also stipulate that compliance with federal law is sufficient to meet several Washington requirements that apply to student loan service providers, including payment terms for borrowers. Other proposed changes affecting MROs include additional disclosure requirements for interest freezes. Under the proposed amendments, MROs must submit a new fixed interest rate agreement to a borrower within three business days of a frozen interest rate change. Valid reasons for a change in a blocked interest rate are changes in the value of the credit, creditworthiness or other factors that may directly affect the pricing. The amendments will also allow MOMs to incur a penalty or prepayment charge on a variable-rate residential mortgage, provided that “the penalty or fee expires at least sixty days before the initial reset period.” Among other provisions, the amendments also provide that a credit processor may modify files from an unlicensed location, provided that the credit processor accesses the files directly from the licensed mortgage broker`s main computer system, does not carry on any of the activities of a licensed MLO, and the licensed MLO has safeguards in place to protect the borrower`s information. The NDC/EB is always responsible for making the Agreement available to the Borrower within three (3) business days of the fixed interest rate and for providing Homebridge with a copy of the signed Agreement. The list of Homebridge approved e-sign providers is attached for reference (see PDF) and has also been posted on the Broker Resources page under Miscellaneous The above guidelines apply to loans submitted to Homebridge on or after May 20, 2019. A copy of the wa rate freeze agreement is attached for reference and will also be posted on Homebridge`s website at www.homebridgewholesale.com on the Broker Resources page at Required Disclosures by State, Washington. On September 24, the Washington State Department of Financial Institutions (DFI) will hold a rule-making hearing to discuss changes related to mortgage lenders (MMO) as well as provisions for student loan service providers.
The proposed changes will amend rules that affect Washington`s Consumer Loans Act and the Mortgage Broker Practices Act, including those related to the regulation of student loan servicers under a final rule that went into effect on January 1. (See InfoBytes` previous report on DFI`s acceptance of changes to student loan service providers here.) According to DFI, the proposed changes are expected to come into force on 24 November. .