Washington State laws governing mortgage brokers/loan originators changed June 12, 2008.  Senate Bill 6381 requires that mortgage brokers owe fiduciary duties to their clients.  In this new class, we will review the new state law and relevant cases from other states.  Mortgage brokers and loan originators will learn the difference between a retail relationship and a fiduciary relationship.  We will review historical case studies of informed consent as well as how relationships brokers have with their clients may result from the broker’s conduct.  Fiduciary duties may include the duty to disclose all loan information to clients, the duty to act in good faith and to deal fairly with clients such as avoiding the acceptance of fees that may be hidden from your client or failing to disclose an arrangement of splitting a fee.  Duties to a client may be elevated when a broker holds special skills, experience, and training that give him or her an advantage over clients. 

We use case studies and role play to help students begin to develop and internalize their new professional role as “Fiduciary.”  We will also review the new Distressed Property Law and learn its relation to the practice of mortgage lending….even though mortgage brokers are exempt from being classified as “Distressed Home Consultants!” 

Through a series of lectures, open discussions, case studies, and a quiz, we will learn what loan originators must know when their client is purchasing a home from a distressed homeowner, how to recognize when your client’s liability increases when participating in a distressed home conveyance, and how the mortgage broker must discharge his or her fiduciary duties during a distressed home sale.

HB 2791
Concerning distressed home conveyances.
Equity skimming laws have been expanded to cover distressed home conveyances and distressed home consultants.

HB 2791 PDF
HB 2791 Summary
HB 2791 Final Bill Report

This course is also approved for Realtor clock hours for Washington State through NAMF’s parent company, CE Forward, Inc.

Visit our Schedule page to find a live class near you.