As a result of new licensing requirements in Washington state for residential loan originators that went into effect January 1, 2007, appraisers in that state have been alerted to obtain the license number of any loan originator involved in an assignment.
Unlicensed loan originators cannot legally originate residential loans, according to an advisory notice sent January 24, 2007, by Robert Wiley, president of Liability Insurance Administrators, to all LIA-insured appraisers in the state.
The LIA advisory notice recommends that the originator's license number be provided to the appraiser with all appraisal requests. The notice encourages appraisers to note the license number in their file as well as in the report, and even to obtain a copy of the license.
According to the LIA advisory, lenders are prohibited from accepting a loan package that was originated by an unlicensed loan originator. The notice also points out that failure to comply with state law might jeopardize an insured’s coverage if a claim might arise
LIA, which administers the Appraisers Liability Insurance Trust, recommends appraisers become familiar with the new requirements by visiting: http://www.dfi.wa.gov/cs/loan_originator.htm.
Source: Appraisal Institute
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