The Washington Department of Financial Institutions (Department) adopted rules amending the Consumer Lending Act (CLA). Under the adopted rules, the Department: clarified that master servicers and subservicers are subject to the CLA’s mortgage servicer provisions (unless otherwise exempt); added an exemption to the CLA for investors and note buyers; amended requirements regarding the annual assessment charged to lenders and servicers; revised requirements with respect to Department notifications; removed the exemption from the CLA’s loss mitigation provisions for lenders and servicers using a HAMP or GSE modification program; relocated provisions related to escrow accounts, requests for information/borrower disputes, and loss mitigation procedures (no substantive changes were made pursuant to the relocation); and now prohibits servicers from conducting certain servicing activities outside of the United States (i.e., receiving payments, collection activities, and communicating with borrowers). The adopted rules become effective September 1, 2018.
See Washington State Department of Financial Institutions website for the full text of the Regulations:
https://dfi.wa.gov/sites/default/files/cla-adopted-rules.pdf
