A Washington loan originator asks a 2026 borrower for a $250 application fee payable to the originator personally. May the individual originator personally accept this fee from the borrower?
Correct Answer
B) Prohibited: an originator may accept no fee of any kind from borrowers
A loan originator may not accept a fee, commission or compensation of any kind from borrowers in connection with preparing, negotiating and brokering a residential mortgage loan. Other choices: size and disclosure do not create an exception; crediting it later does not change who accepted it; and the prohibition applies to licensed originators. Source: RCW 19.146.070(1)
Why This Is the Correct Answer
A loan originator may not accept a fee, commission or compensation of any kind from borrowers in connection with preparing, negotiating and brokering a residential mortgage loan. Other choices: size and disclosure do not create an exception; crediting it later does not change who accepted it; and the prohibition applies to licensed originators. Source: RCW 19.146.070(1)
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