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PDFWAC 208-620-825

What reverse mortgage program information must I submit to the director for approval before offering or making proprietary reverse mortgages?

(1) A description of all proprietary reverse mortgage products available to borrowers.
(2) A copy of each proprietary loan product contract.
(3) A copy of all disclosures provided to borrowers for all proprietary reverse mortgage products.
(4) A copy of the projected total cost of credit disclosure provided to borrowers. The projected total cost of credit disclosure must reflect at a minimum the following factors, as applicable:
(a) All costs and charges to the consumer;
(b) All advances to and for the benefit of the consumer;
(c) Any shared appreciation or equity in the dwelling that you are entitled to receive under the contract to receive;
(d) Any limitation on the consumer's liability (such as nonrecourse limits and equity conservation agreements);
(e) Each of the assumed annual appreciation rates for the dwelling:
(i) Zero percent;
(ii) Four percent;
(iii) Eight percent.
(f) Each of the following assumed loan periods:
(i) Two years;
(ii) The actuarial life expectancy of the consumer to become obligated on the reverse mortgage transaction (as of the consumer's most recent birthday). If there is more than one consumer, the period must be the actuarial life expectancy of the youngest consumer as of that consumer's most recent birthday.
(g) Reserved.
(5) Your complaint processing policies and procedures.
(6) A copy of all notes and mortgages used in proprietary reverse mortgage loan transactions.
(7) If third party originators are used, copies of all due diligence policies and procedures for their use and copies of all compensation and incentive policies and procedures.
(8) A copy of your underwriting policies.
(9) A description of your title search methods.
(10) A copy of your policy for paying subsequent liens.
(11) A copy of your appraisal practices.
(12) A copy of audited financial statements and unaudited balance sheet and income statement for the most recent end quarter for the last two years of audited financial statements. If you are relying on your parent company's capital to satisfy WAC 208-620-810(2), you must also include the parent company's last two years of audited financial statements and the most recent end quarter unaudited balance sheet and income statement.
(13) Copies of your residential mortgage loan servicing policies and procedures.
[Statutory Authority: RCW 43.320.040 and 31.04.165. WSR 18-16-024, § 208-620-825, filed 7/24/18, effective 9/1/18; WSR 12-18-047, § 208-620-825, filed 8/29/12, effective 11/1/12. Statutory Authority: RCW 43.320.040, 31.04.165, 2009 c 120, and 2009 c 149. WSR 09-24-090, § 208-620-825, filed 12/1/09, effective 1/1/10.]
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