On July 8, Washington State’s Department of Financial Institutions (DFI) entered a consent order resolving charges that a mortgage lending company violated the state’s Consumer Loan Act, including by allegedly conducting unlicensed mortgage loan originator and manager activity, failing to prepare and maintain required supervisory plans, and failing to maintain compliance with BSA/AML program requirements. The DFI’s underlying statement of charges, entered September 8, 2025, alleged that at least one individual who assisted a borrower with a residential mortgage loan application was not licensed as a mortgage loan originator at the time, that the company took at least one residential mortgage loan application before obtaining its own license, and that at least six managers supervising licensed mortgage loan originators were not themselves licensed at the time of the activity.

The statement of charges further alleged that the company failed to prepare and maintain at least 34 supervisory plans for its managers, failed to maintain required surety bond coverage for 2023 and 2024, and did not submit timely or accurate annual reports to the department for 2022 and 2023. The DFI also asserted that the company failed to ensure employees completed ongoing training under its BSA/AML program and failed to conduct independent testing of that program. Under the terms of the consent order, the company agreed to cease and desist from violating the Consumer Loan Act and its implementing rules, without admitting or denying the department’s allegations.