Washington adopted rules clarifying tangible net worth and liquidity requirements for mortgage loan servicers licensed under the Consumer Loan Act (CLA). Under the adopted rules, the surety bond requirement for mortgage loan servicers has been repealed. Mortgage loan servicers must now meet tangible net worth and liquidity requirements. A mortgage loan servicer that services loans that are not guaranteed by a government sponsored entity or government corporation (non-GSE loans) must maintain a tangible net worth based on the number of mortgage loans the servicer services. In lieu of maintaining the required net worth, a servicer may maintain a $1,000,000 surety bond. Additionally, servicers of non-GSE loans must maintain liquidity (including operating reserves) of .00035 times the unpaid principal balance of the servicer’s portfolio. A mortgage loan servicer that operates as an approved servicer for one or more government sponsored entity or government corporation (GSE) must continue to maintain liquidity (including operating reserves) and tangible net worth in accordance with the GSE’s standards. The adopted rules also clarify surety bond requirements for lenders licensed under the CLA. The adopted rules become effective January 1, 2018.
