Investigation and Enforcement Actions

What is the Washington State Department of Financial Institutions? The Washington State Department of Financial Institutions (DFI) is the State administrative agency that regulates nearly twenty industries that deal with financial interests and in financial instruments. DFI has about 200 employees that include financial examiners, consultants, financial legal examiners, information examiners, and attorneys who operate…

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Mortgage Broker Regulatory Enforcement

Mortgage brokers alleged to have violated any of the applicable statutes or regulations that DFI administers can face liability from two primary avenues: DFI enforcement actions and private civil lawsuits | litigation.  This page pertains to DFI enforcement actions. DFI Enforcement ActionsUpon receiving a complaint that a mortgage broker violated a Washington State law or…

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Mortgage Broker Overview

Overview of the Division of Consumer Services and Mortgage Broker Licenses The Washington Department of Financial Institutions (DFI) is an administrative agency that has long regulated mortgage brokers doing business in Washington State through the Division of Consumer Services. The financial crisis of 2007-2008 was largely caused by poor, and often wrongful practices by mortgage…

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Mortgage Broker Civil Litigation

Mortgage brokers alleged to have violated any applicable statutes or regulations may face liability from two primary avenues: DFI enforcement actions and private civil litigation. This page pertains to civil litigation. Civil Litigation Separate from a DFI enforcement action, a mortgage broker may be the subject of a civil lawsuit. Certain statutes, such as the…

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Escrow Agent – Regulatory Enforcement

In 2010, the Washington legislature modified the Escrow Agents Registration Act that governs the admission, licensing, and conduct of Escrow Agents in Washington. All licensees are required to know and to comply with all sections of the Escrow Agents Registration Act RCW 18.44 et seq and the implementing regulations in WAC 208-680. All Escrow Agents must first apply and…

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Escrow Agents – General

Escrow is crucial in real estate transactions because it provides a neutral third party to handle the documents and finances associated with the transaction. This position of trust is highly regulated through the Washington Department of Financial Institutions (DFI), which regulates escrow agents doing business in Washington State through the Division of Consumer Services. Recent years…

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Escrow Agent – Civil Litigation

Escrow Agents alleged to have violated any of the statutes or regulations listed in our Escrow Agent Overview Page can face liability from two primary avenues: DFI enforcement actions and civil litigation. This page is pertaining to civil litigation. Civil Litigation Separate from a DFI enforcement action, an Escrow Agent accused of violating the the Escrow Agents…

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Consumer Loan Companies – Regulatory Enforcement

As with home mortgage lenders and brokers, laws governing all consumer lenders have become more exacting since the 2008 financial crisis.  In 2019, Washington Department of Financial Institutions | DFI fielded 1210 complaints resulting in 116 enforcement actions.  With about 200 employees and the backing of the Washington State Office of the Attorney General for litigation support, this is…

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