Homebridge will make the Agreement available to the Borrower(s) for all loans blocked after submission The NDC/EB is always responsible for making the Agreement available to the Borrower(s) within three (3) business days following the fixed interest rate and providing Homebridge with a copy of the signed Agreement. 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. 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. A notable change to the rules includes the addition of WAC 208-620-510(5), which provides an additional disclosure requirement with respect to interest suspensions. The rule states that a borrower must receive a new fixed interest rate agreement within three business days of a change in a blocked interest rate. He continues: “Changes to a blocked interest rate can only occur if the borrower charges the fee or for valid reasons such as changes in credit score, credit score or other credit factors that directly affect pricing.
Blocking extensions and relocks is also considered a valid reason to change a previously blocked interest rate. Other changes to the rules are intended to clarify what fees may be charged for different types of credit products (WAC 208-620-520) and which fees are prohibited for certain credit products (WAC 208-620-563). On the 24th. In September, the Washington State Department of Financial Institutions 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 the DFI, the proposed amendments are currently due to enter into force on 24 November. “Lexology/kiosk is an extremely useful resource. Getting it definitely makes my life a lot easier. The proposed amendments also include several changes that apply to student loan service providers governed by the Consumer Loans Act, including: (i) licensees who provide student loans to borrowers in the Crown “may request the Director to waive or adjust the amount of the annual assessment”; (ii) Licensees are required to disclose to all members of the Service their rights under the laws and regulations of members of state and federal services with respect to their student loans; and (iii) student loan service providers must review all student loan borrowers against the Department of Defense database to ensure that the borrower`s claims are appropriately enforced and adhere to written policies and procedures for this practice.