On February 20, the state of Washington’s Department of Financial Institutions (DFI) issued a consent order against a licensed mortgage lender for violating the Consumer Loan Act and related regulations. The order imposed a $100,000 fine, with $50,000 stayed for five years contingent on compliance, plus an investigation fee of $2,522.31. The respondent agreed to surrender its license, stop violations, and avoid participating in the state’s mortgage broker and consumer loan industries for five years.

DFI’s investigation found that, between January 2023 and January 2025, the respondent: (i) failed to maintain a sufficient surety bond; (ii) employed unlicensed managers; (iii) transacted business using only a trade name without proper license identification; (iv) did not accurately date mortgage loan applications; (v) failed to provide timely rate lock agreements; (vi) did not deliver lists of homeownership counseling organizations within required timeframes; (vii) issued incomplete closing disclosures; and (viii) did not adhere to tolerance limits under federal law. The investigation further determined the respondent acted in violation of a prior consent order by employing an individual previously prohibited from participating in the industry, who DFI found had assisted at least 55 borrowers in applying for residential mortgage loans in Washington.