DFI was able to pass a law because WAMB trusted them when they asked if the legislation would impact mortgage brokers (this is a real nutshell summary)...WAMB apparently trusted DFI and did not investigate this matter further... so now mortgage brokers who have a warehouse line (or are correspondent lenders) are now required to obtain a consumer loan license...this will cost correspondent lenders a significant amount of money AND allow them to do hard money loans.   What a great way to protect the consumer!  Increase the cost of mortgages and license a group of mortgage brokers to venture into an area beyond subprime.

Tomorrow (I'm just learning of this tonight) there is a meeting specifically about this new LAW which goes into effect in June, in Renton.  This just appeared on DFI's site...so I'm assuming that most mortgage brokers/correspondents may not know about this and I want to get the word out.

Meeting Of The Mortgage Broker Commission To Discuss The Impacts Of SB 6471
May 7, 2008, at 1:00 p.m.
Renton Community Center, Banquet Room (100 max capacity)
1715 Maple Valley Highway
Renton, WA (Driving Directions)

Please attend and pass the word to fellow Correspondent Lenders/Mortgage Brokers in Washington State.