Licensure Renewals with the Department of Financial Institutions [DFI] when an Enforcement Action is Pending

With most other State agencies, if there is a pending enforcement action with no summary action, a licensee can usually renew their WA licensure with the respective Department until they have exhausted their administrative remedies, such as through a hearing on the merits to have a Final Order.  Not precisely so with DFI.

If a Mortgage Loan Originator or Broker has an investigation, even if they are individually unaware of it or the status, DFI conducts an internal review of whether or not to keep that renewal as “pending” or to push it through—the former is more likely to be applied when enforcement has developed into formal charges. 

Regardless, under the Administrative Procedure Act in Chapter 34.05 of the RCW, once a hearing on any charges has been timely requested, the licensure technically should still be active and valid even if it is still pending. 

It is confusing for a DFI licensee to have their renewal essentially on indefinite “pending” status after the renewal time, in a highly regulated industry, to know if they are operating legally and should consult with counsel.