Paula Christina Krost - Consent Order and Fine

Last updated 3/9/2026 ORDER SUMMARY Consumer Services Division Case Number C-23-3656 Consent Orders/Consent Agreements resolve investigations. In these, companies and individuals work with us to agree to terms that resolve the alleged issues in the investigation. Name Paula Christina Krost NMLS #487482 Order Number C-23-3656-25-CO01 Date issued March 9, 2026 What does this Consent Order • Must pay a fine of $50,000.00. $25,000.00 of this fine is stayed (doesn’t have to be paid) until March 9, 2036 as long as Respondent complies with the order. The fine goes away on that date if Respondent has complied. • Must pay an investigation fee of $10,016.80. (Investigation fees cover the cost of DFI staff time working on the investigation.) • Payments of the fine and investigation fee shall be made in monthly installments by the 15 th day of each month. • Paula Christina Krost’s mortgage loan originator license is surrendered. • Agreement to not apply for any license with DFI under any name until March 9, 2036. • Paula Christina Krost is not allowed to participate in mortgage broker or consumer loan lending in Washington until March 9, 2036. Need more information? You can contact the Consumer Services Division, Enforcement unit at (360) 902-8703 or csenforcecomplaints@dfi.wa.gov. Please remember that we cannot provide financial or legal advice to members of the public. We also cannot release confidential information.

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9thMarch

1 DEPARTMENT OF FINANCIAL INSTITUTIONS () 902-8703 STATE OF WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS DIVISION OF CONSUMER SERVICES IN THE MATTER OF DETERMINING Whether there has been a violation of the Consumer Loan Act of Washington by: PAULA CHRISTINA KROST, NMLS #487482, Respondent. No. C-23-3656-25-SC01 STATEMENT OF CHARGES and NOTICE OF INTENT TO ENTER AN ORDER TO CEASE AND DESIST, REVOKE LICENSE, PROHIBIT FROM INDUSTRY, IMPOSE FINE, COLLECT INVESTIGATION FEE, and RECOVER COSTS AND EXPENSES INTRODUCTION Pursuant to RCW 31.04.093 and RCW 31.04.165, the Director of the Department of Financial Institutions of the State of Washington (Director) is responsible for the administration of chapter 31.04 RCW, the Consumer Loan Act (Act). After having conducted an investigation pursuant to RCW 31.04.145, and based upon the facts available as of the date of this Statement of Charges, the Director, through his designee, Division of Consumer Services Director Ali Higgs, institutes this proceeding and finds as follows: I. FACTUAL ALLEGATIONS 1.1 Respondent. Paula Christina Krost (Respondent) was licensed by the Department to conduct business as a mortgage loan originator on or about May 1, 2018, and continues to be licensed to date. Respondent was employed as a Retail District Manager by Amerisave Mortgage Corporation (Amerisave), a licensed consumer loan company, from about December 27, 2021, to June 28, 2022. Respondent was later employed as a Sales Manager by Summit Funding Inc. (Summit), a licensed consumer loan company, from about December 30, 2022, to February 1, 2023. Respondent was employed as a mortgage loan originator by Xpert Home Lending, Inc. (Xpert), a licensed consumer loan company, from about January 23, 2023, to present.

2 DEPARTMENT OF FINANCIAL INSTITUTIONS () 902-8703 1.2 Unfair, Deceptive, and Misleading Practices. During Respondent’s employment at Amerisave, Summit, and Xpert, Respondent facilitated or allowed a person to participate in the conduct and the affairs of those companies even though Respondent knew or should have known that the Department issued multiple orders prohibiting the person from participation in the conduct of the affairs of a consumer loan company licensed by the Department. For example, this included Respondent providing the person with access to Respondent’s login credentials for one or more of the companies and allowing the person to use Respondent’s email account at one or more of the companies. 1.3 Unlicensed Activity. From about February 20, 2023, through December 14, 2023, Respondent, while acting as a mortgage loan originator for Xpert, engaged, hired, or permitted one or more persons to complete work, including work as an independent contractor loan processor, related to Xpert’s consumer loan company activities. The persons Respondent hired did not have a license with the Department and the Department previously prohibited at least one of them from participating in the conduct of the affairs of a consumer loan company. 1.4 On-Going Investigation. The Department’s investigation into the alleged violations of the Act by Respondent continues to date. II. GROUNDS FOR ENTRY OF ORDER 2.1 Unfair, Deceptive, and Misleading Practices. Based on the Factual Allegations set forth in Section 1.2 above, Respondent is in apparent violation of RCW 31.04.027(1)(a), RCW 31.07.027(1)(b), and WAC 208-620-550(14) for facilitating or allowing a person to participate in the conduct and the affairs of consumer loan companies even though Respondent knew or should have known that the Department issued multiple orders prohibiting the person from participation in the conduct of the affairs of a consumer loan company licensed by the Department.

3 DEPARTMENT OF FINANCIAL INSTITUTIONS () 902-8703 2.2 Unlicensed Activity. Based on the Factual Allegations set forth in Section 1.3 above, Respondent is in apparent violation of RCW 31.04.027(1)(a), RCW 31.04.027(1)(b), RCW 31.04.027(1)(m), RCW 31.04.227, WAC 208-620-011(7), WAC 208-620-371, WAC 208-620-372, WAC 208-620-550(14), WAC 208-620-700(8), and 12 U.S.C. § 5103(b)(2) for engaging, hiring, or permitting one or more unlicensed third-party processors to conduct work related to a consumer loan company’s activities, including a person who the Department previously prohibited from participating in the conduct of the affairs of a consumer loan company. 2.3 Requirement to Demonstrate Character and Fitness. Based upon the Factual Allegations set forth in Section I above, Respondent has not demonstrated, in accordance with RCW 31.04.247(1)(e), financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of the Act. III. AUTHORITY TO IMPOSE SANCTIONS 3.1 Authority to Issue an Order to Cease and Desist. Pursuant to RCW 31.04.093(5)(a), the Director may issue orders directing a licensee, its employee or loan originator, or other person subject to the Act to cease and desist from conducting business in a manner that is injurious to the public or violates any provision of the Act. 3.2 Authority to Revoke License. Pursuant to RCW 31.04.093(3), the Director may revoke a license if (b) the licensee either knowingly or without the exercise of due care, has violated any provision of the Act or any rule adopted under the Act, (c) a fact or condition exists that, if it had existed at the time of the original application for the license, clearly would have allowed the Director to deny the application for the original license, or (d) the licensee failed to comply with any directive, order, or subpoena issued by the Director under the Act.

4 DEPARTMENT OF FINANCIAL INSTITUTIONS () 902-8703 3.3 Authority to Prohibit from the Industry. Pursuant to RCW 31.04.093(6), the Director may issue an order prohibiting from participation in the affairs of any licensee, or both, any officer, principal, employee or mortgage loan originator, or any other person subject to the Act for (d) failure to comply with any order or subpoena issued under the Act, or (e) a violation of RCW 31.04.027. 3.4 Authority to Impose Fine. Pursuant to RCW 31.04.093(4), the Director may impose fines of up to one hundred dollars per day, per violation, upon the licensee, its employee or loan originator, or other person subject to the Act for (a) any violation of the Act, or (b) failure to comply with any directive, order, or subpoena issued by the Director under the Act. 3.5 Authority to Charge Investigation Fee. Pursuant to RCW 31.04.145(3), WAC 208-620- 590, and WAC 208-620-610(7), every licensee investigated by the Director or the Director’s designee must pay for the cost of the investigation, calculated at the rate of $69.01 per hour devoted to the investigation. 3.6 Authority to Recover Costs and Expenses. Pursuant to RCW 31.04.205(2), the Director may recover the state’s costs and expenses for prosecuting violations of the Act. IV. NOTICE OF INTENT TO ENTER ORDER Respondent’s violations of the provisions of chapter 31.04 RCW and chapter 208-620 WAC, as set forth in the above Factual Allegations, Grounds for Entry of Order, and Authority to Impose Sanctions, constitute a basis for the entry of an Order under RCW 31.04.093, RCW 31.04.165, RCW 31.04.202, and RCW 31.04.205. Therefore, it is the Director’s intent to ORDER that: 4.1 Respondent Paula Christina Krost cease and desist from conducting business in a manner that is injurious to the public or violates any provision of the Act, including violations cited in this Statement of Charges. 4.2 Respondent Paula Christina Krost’s license to conduct the business of a mortgage loan originator be revoked. 4.3 Respondent Paula Christina Krost be prohibited from participation in the conduct of the affairs of any consumer loan company subject to licensure by the Director, in any

5 DEPARTMENT OF FINANCIAL INSTITUTIONS () 902-8703 manner, for a period of ten (10) years. 4.4 Respondent Paula Christina Krost, pay a fine, which as of the date of this Statement of Charges totals $50,000.00. 4.5 Respondent Paula Christina Krost pay an investigation fee, which as of the date of this Statement of Charges totals $10,016.80. 4.6 Respondent Paula Christina Krost pay the Department’s costs and expenses for prosecuting violations of the Act in an amount to be determined at hearing or by declaration with supporting documentation in event of default by Respondent Paula Christina Krost. / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /

6 DEPARTMENT OF FINANCIAL INSTITUTIONS () 902-8703 V. AUTHORITY AND PROCEDURE This Statement of Charges and Notice of Intent to Enter an Order to Cease and Desist, Revoke License, Prohibit from Industry, Impose Fine, Collect Investigation Fee, and Recover Costs and Expenses (Statement of Charges) is entered pursuant to the provisions of RCW 31.04.093, RCW 31.04.165, RCW 31.04.202, and RCW 31.04.205, and is subject to the provisions of chapter 34.05 RCW (The Administrative Procedure Act). Respondent may make a written request for a hearing as set forth in the NOTICE OF OPPORTUNITY TO DEFEND AND OPPORTUNITY FOR HEARING accompanying this Statement of Charges. Dated this 28th day of August, 2025. _ _______________ ALI HIGGS, Director Department of Financial Institutions Presented by: _______________________________ MEGAN GUTHRIE Financial Legal Examiner Approved by: _______________________________ KENDALL FREED Enforcement Chief _ ALI HIGG SDDDDDDiDDre