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Senate Bill Report SB 5077 — Mortgage Loan Originators and Residence Branch Office (As of January 12, 2021)

Summary

Senate Bill Report SB 5077 as of January 12, 2021, for the Senate Committee on Business, Financial Services & Trade, on an act providing authority to licensed companies to allow licensed mortgage loan originators to work from their residences without the company licensing the residence as a branch office. The background states that under existing statute, mortgage loan originators licensed by the Department of Financial Institutions must originate mortgage loans from a licensed location. The summary of the bill provides flexibility to work from home, provided state security requirements are in place, physical business records may not be kept at the residence, and work is conducted through the licensed company’s secure operating system.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2021-01-14
Case
2021 01 14 A28148 D224405 Bill Report 5077 Sbr Bfst Ta 21

Cite this document

“Senate Bill Report SB 5077 — Mortgage Loan Originators and Residence Branch Office (As of January 12, 2021).” Original at app.leg.wa.gov, dated 2021-01-14. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-01-14-2021-01-14-a28148-d224405-bill-report-5077-sbr-bfst-ta-21/, SHA-256 defffc0a1f39b489c04b2850197e891539e7310a2a086395a45e2c6f9e9624ec.

Full text

                            SENATE BILL REPORT
                                  SB 5077

                                      As of January 12, 2021

Title: An act relating to providing authority to licensed companies to allow licensed mortgage
     loan originators to work from their residences without the company licensing the residence
     as a branch office of the company.

Brief Description: Providing authority to licensed companies to allow licensed mortgage loan
     originators to work from their residences without the company licensing the residence as a
     branch office of the company.

Sponsors: Senators Dozier, Mullet, Das, Warnick, Wilson, C. and Brown; by request of
    Department of Financial Institutions.

Brief History:
     Committee Activity: Business, Financial Services & Trade: 1/12/21.


                                     Brief Summary of Bill
           • Provides mortgage loan originators the flexibility to work from their
             residence under certain circumstances.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Clinton McCarthy (786-7319)

     Background: Under existing statute, mortgage loan originators licensed by the Department
     of Financial Institutions must originate mortgage loans from a licensed location. If a
     mortgage loan was originated from someone's residence, it would be a violation of the
     Consumer Loan Act, unless the residence is licensed for mortgage loan origination.

     Summary of Bill: Mortgage loan originators are provided the flexibility to work from their
     home without licensing their home as a branch location, provided:
        • state security requirements are in place;



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 5077
         • physical business records may not be kept at the residence; and
         • work is conducted through the licensed company’s secure operating system.

     Appropriation: None.

     Fiscal Note: Available.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.

     Staff Summary of Public Testimony: PRO: The pandemic has forced a lot of industries
     to rely on its employees to do their work from home. People cannot go and see their lenders
     at a convenient time, nor do many feel safe given the current situation. This seems like a
     good idea to make the guidance that the Department of Financial Institutions provided to
     make it temporarily permissible for mortgage loan originators (MLOs) to work from home
     permanent. We should move forward with this. These statutes need to be updated to reflect
     our mobile workforce and the changes that have occurred with new technologies. To date,
     the temporary ability for MLOs to work from home has worked really well. If this bill were
     to pass, it would be supported through rulemaking with stakeholder feedback. Almost all
     documentation for refinancing is digital. This cannot happen with significant security
     resources.

     Persons Testifying: PRO: Senator Perry Dozier, Prime Sponsor; Drew Bouton,
     Washington Department of Financial Institutions; Cindy Fazio, Department of Financial
     Institutions; Andy McDonough, Upwell Mortgage and Washington Mortgage Bankers
     Association; Tony Blodgett, New American Funding and Washington Mortgage Bankers
     Association; Michael Patterson, Washington Association of Mortgage Professionals.

     Persons Signed In To Testify But Not Testifying: No one.




Senate Bill Report                            -2-                                        SB 5077

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2021-01-14_a28148_d224405_bill-report-5077-sbr-bfst-ta-21.pdf
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Our copy
2021-01-14_a28148_d224405_bill-report-5077-sbr-bfst-ta-21.pdf
Original
app.leg.wa.gov
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