The Washington State Department of Financial Institution (DFI) has published proposed revisions to its student loan servicer regulations. This proposal would amend rules that went into effect earlier this year pursuant to Washington’s student loan servicing law.
While most of the proposed amendments relate to mortgage loan origination, and several of the changes are merely technical, there are several substantive additions relevant to student loan servicers, including:
- An affirmative requirement that Consumer Loan Act licensees disclose to all service members, in connection with student loans, their rights under state and federal service member laws and regulations;
- A requirement that student loan servicers must (1) scrub against the Department of Defense’s Manpower Database on a monthly basis, (2) apply borrower entitlements accordingly, and (3) maintain related written policies and procedures (though compliance with applicable federal requirements is sufficient); and
- A provision that would allow Consumer Loan Act licensees servicing student loans for Washington state borrowers to apply to the DFI’s director to have annual assessments waived or adjusted.