A Washington broker works a 2026 file for 3 months, the borrower gets no loan, and the broker bills $1,100. Assuming no statutory fee exception applies, may the broker collect compensation when no agreed loan is obtained?
Correct Answer
A) Prohibited: no fee unless a loan is obtained on the agreed terms
Except as the section otherwise permits, a mortgage broker must not receive a fee, commission or compensation of any kind in connection with preparing, negotiating and brokering a residential mortgage loan unless the borrower actually obtains a loan from a lender on the terms and conditions agreed upon by the borrower and the broker. Other choices: the work being done is the situation the rule addresses; an hourly justification is not an exception; and the reason no loan resulted is not the test. Source: RCW 19.146.070(1)
Why This Is the Correct Answer
Except as the section otherwise permits, a mortgage broker must not receive a fee, commission or compensation of any kind in connection with preparing, negotiating and brokering a residential mortgage loan unless the borrower actually obtains a loan from a lender on the terms and conditions agreed upon by the borrower and the broker. Other choices: the work being done is the situation the rule addresses; an hourly justification is not an exception; and the reason no loan resulted is not the test. Source: RCW 19.146.070(1)
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