A Washington borrower pays a $395 lock-in fee to the broker in 2026 by a check made out to the broker. Must this borrower-paid lock fee payable to the broker be deposited in trust?
Correct Answer
A) Trust funds: the lock-in fee belongs in the broker trust account
Lock-in agreement fees paid by a borrower to the mortgage broker are trust funds and must be deposited in the trust account, unless the check is made payable to the lender. Other choices: the fee being earned is not what decides the characterization; a failed lock is not the trigger; and forwarding it later does not change what it was on receipt when the check ran to the broker. Source: WAC 208-660-410(2)
Why This Is the Correct Answer
Lock-in agreement fees paid by a borrower to the mortgage broker are trust funds and must be deposited in the trust account, unless the check is made payable to the lender. Other choices: the fee being earned is not what decides the characterization; a failed lock is not the trigger; and forwarding it later does not change what it was on receipt when the check ran to the broker. Source: WAC 208-660-410(2)
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