See below for DFI’s responses to concerns frequently inquired about Loan Processors.
We act as that Loan Processor. Must i’ve that Loan Originator or large financial company permit at the time of 1, 2007 january?
- You won’t have to be certified with DFI underneath the following situations:
- You will be an employee that is w2 Processor for a licensed home loan broker(s). Generally speaking, you need to work from an authorized location (primary or branch workplace). See WAC 208-660-300(14) for more information.
- You will be an employee that is w2 Processor for a financial loan processing company which has home financing broker permit. Generally speaking, you have to work from a licensed location. See WAC 208-660-300(14) to find out more.
- You really must have a license with DFI underneath the after situations:
- You really need to have that loan originator license in the event that you are an unbiased contractor Loan Processor ( receive a 1099) for the licensed mortgage broker. You need to work from the licensed location under the large financial company license.
- You really must have a loan originator license in the event that you act as a independent specialist loan Processor ( get a 1099) for a loan processing company. You have to work from a location that is licensed the loan processing business’s large financial company permit.
- You really must have a home loan broker permit if you have a processing company that independently agreements (gets a 1099) with licensed mortgage agents to process loans. Your W2 employees and separate contractors (1099 paid workers) must work from a licensed location. Your separate contractors must be certified as loan originators.
Currently as that loan Processor, I have compensated straight from the closing dining dining table – maybe not a W2 and never a 1099 – where do we easily fit in this guidance?
Only the certified home loan broker and bona fide party that is third providers might be compensated through the closing dining dining table.
- In the event that you choose option 2a above, the “processing fee” should be compensated at shutting into the large financial company who can in turn spend you (as an authorized loan originator) – then report your payments into the IRS for a 1099.
- In the event that you choose choice 2c above, the processing business that holds home financing broker permit could be compensated the “processing fee” at closing. Then your processing business shall spend its employees.
I am a independent specialist loan Processor working in one mortgage broker company’s licensed branch workplace, but i do want to process loans for several home loans only at that location. Does each large financial business company need certainly to license this location as being a branch, or as it’s already an authorized location could I simply relate my loan originator permit to your mortgage that is many and keep working just using this location?
The mortgage papers for every mortgage broker should be managed at an authorized location. Some of these choices are appropriate:
- Each mortgage broker company might license your local area as being a branch.
- Each large financial company may come right into a processing contract utilizing the ongoing business keeping the large financial company branch license at your local area.
- You could travel from location to location so that you plan each large financial business company’s loans at that ongoing company’s licensed location(s).
I will be a contractor that is independent Processor working from a home loan broker company’s certified branch workplace. Can I process loans for other home loans out of this location?
As soon as you get your loan originator permit, either of those choices is appropriate:
- Each additional large financial business company for who you provide loan processing services may license the positioning as a branch. You need to set up a W-2 or 1099 relationship with every of the home loans.
- Each mortgage that is additional company for whom you provide loan processing services may access an agreement aided by the large financial company company keeping the branch permit at that location.
How must Loan Processors handle loan files?
Follow these recommendations whenever loan that is processing:
- Loan files should always live at a location that is licensed. The positioning could be a branch for the home loan broker’s workplace or perhaps a processing that is separate licensed underneath the act.
- A licensed loan originator processing files for over one mortgage broker can process the mortgage files at each mortgage broker’s primary or branch office, going from business to business. Or even the licensed loan originator can start an office that is licensed being a branch of every home loan company with whom they contract to process loans.
- In the event that Loan Processor creates and keeps a duplicate loan file, that file should be in line with the file that is original by the large financial company.
- Data might be kept in paper form or in a number of electronic news. The originating mortgage broker has the home loan file and it is expected to maintain the apply for at the least twenty-five months.