Rules providing an optional method for registering mortgage paper securities were proposed for amendment by the Washington Department of Financial Institutions. The rules as amended would strengthen investor suitability requirements, revise the calculation of the number of investors that may participate in a loan, establish requirements for participation agreements, revise net worth and bonding requirements, revise provisions regarding escrow accounts and escrow agreements, establish requirements for servicing agreements, codify the requirement for a disclaimer in advertisements, clarify the fiduciary duties of a mortgage broker-dealer, include additional “dishonest and unethical practices” in WAC 460-33A-090, clarify the requirements for appraisals, clarify investors’ rights to receive information and access records concerning their investments, and update recordkeeping requirements in WAC 460-33A-115.
Interested persons may submit written comments about the proposals to Jill Vallely at jvallely@dfi.wa.gov.