WSR 12-02-026 AGENDA
DEPARTMENT OF FINANCIAL INSTITUTIONS
[ Filed December 28, 2011, 1:01 p.m. ]
Semi-Annual Agenda for Rules Under Development January 1 - June 30, 2012
DIVISION OF BANKS
? Adopt rule to provide for compliance with Section 611 of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law No. 111-203). That section deals with the requirement that after January 21, 2013, no state chartered bank may engage in any derivatives transaction unless it is subject to state lending limits laws and regulations that include the safety and soundness of derivatives transaction.
DIVISION OF CONSUMER SERVICES
? Chapter 208-660 WAC, amendments relating to the Mortgage Broker Practices Act. The advertising rules must be amended to protect consumers from financial harm, aid the regulated industries by having consistent rules within the mortgage marketplace, and to make technical changes for clarity and consistency. These rules comply with the OFM guidelines implementing the governor's executive order suspending noncritical rule making by falling under the exemption of "beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects" and "necessary to respond to current economic conditions or assist in long-term economic recovery, to include employment assistance, consumer protection or government reform."
? Chapter 208-620 WAC, amendments relating to the Consumer Loan Act. The advertising and loan servicing rules must be amended to protect consumers from financial harm, aid the regulated industries by having consistent rules within the mortgage marketplace, and to make technical changes for clarity and consistency. These rules comply with the OFM guidelines implementing the governor's executive order suspending noncritical rule making by falling under the exemption of "beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects" and "necessary to respond to current economic conditions or assist in long-term economic recovery, to include employment assistance, consumer protection or government reform."
DIVISION OF SECURITIES
? Chapter 460-24A WAC, amendments to rules relating to investment advisers. The Dodd-Frank Wall Street Reform and Consumer Protection Act raised the threshold for federal jurisdiction from $25 million AUM to $100 million AUM. This will result in Washington gaining approximately three hundred new IA licensees that switch from federal to state jurisdiction, an increase of sixty percent. Rule making will be necessary to address regulatory issues presented by these new licensees. These rules comply with the OFM guidelines implementing the governor's executive order suspending noncritical rule making by falling under the exemption of "required by federal or state law."
? Chapter 460-33A WAC, amendments to rules relating to mortgage paper securities. These rules regulate mortgage broker-dealers which make "hard-money" loans and sell interests in those loans to investors. These companies have been significantly impacted by the economic downturn and two have been placed into receivership as a result of petitions by the division. As the only agency regulating these companies, it is important that the division regularly examine and update its rules to address regulatory concerns and market changes. These rules comply with the OFM guidelines implementing the governor's executive order suspending noncritical rule making by falling under the exemption of "beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects." The securities division has been working with its mortgage broker-dealer registrants for several months on revisions to the mortgage papers rules and believes that most of the amendments it proposes will be supported by registrants. Any rules that are not fully supported by industry will be necessary to protect the public welfare.
