Multiple Agency Fiscal Note Summary, 5109 SB, Mortgage lending fraud acc.
Summary
Multiple Agency Fiscal Note Summary for 5109 SB, titled Mortgage lending fraud acc., marked Preliminary 1/21/2025, followed by the Department of Financial Institutions individual fiscal note and a ten-year analysis. The Department of Financial Institutions shows estimated cash receipts of 2,355,550 for 2025-27, 3,701,165 for 2027-29 and 3,028,358 for 2029-31 in the Mortgage Lending Fraud Prosecution Account. The narrative says the account is funded by a charge assessed when a deed of trust is recorded, and that the bill would increase that charge and remove the sunset clause. The current expiration date is June 30, 2027.
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“Multiple Agency Fiscal Note Summary, 5109 SB, Mortgage lending fraud acc.”
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Multiple Agency Fiscal Note Summary
Bill Number: 5109 SB Title: Mortgage lending fraud acc.
Estimated Cash Receipts
Agency Name 2025-27 2027-29 2029-31
GF-State NGF-Outlook Total GF-State NGF-Outlook Total GF-State NGF-Outlook Total
Department of 0 0 2,355,550 0 0 3,701,165 0 0 3,028,358
Financial Institutions
Total $ 0 0 2,355,550 0 0 3,701,165 0 0 3,028,358
Agency Name 2025-27 2027-29 2029-31
GF- State Total GF- State Total GF- State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other 123,975 194,797 159,386
Local Gov. Total 123,975 194,797 159,386
Estimated Operating Expenditures
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Office of State Fiscal note not available
Treasurer
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Financial
Institutions
Total $ 0.0 0 0 0 0.0 0 0 0 0.0 0 0 0
Estimated Capital Budget Expenditures
Agency Name 2025-27 2027-29 2029-31
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Office of State Treasurer Fiscal note not available
Department of Financial .0 0 0 .0 0 0 .0 0 0
Institutions
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
NONE
FNPID 71652
:
FNS029 Multi Agency rollup
Prepared by: Megan Tudor, OFM Phone: Date Published:
(360) 890-1722 Preliminary 1/21/2025
FNPID 71652
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 5109 SB Title: Mortgage lending fraud acc. Agency: 102-Department of Financial
Institutions
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
ACCOUNT FY 2026 FY 2027 2025-27 2027-29 2029-31
Mortgage Lending Fraud Prosecution 1,052,610 1,302,940 2,355,550 3,701,165 3,028,358
Account-Non-Appropriated 07A-6
Total $ 1,052,610 1,302,940 2,355,550 3,701,165 3,028,358
Estimated Operating Expenditures from:
NONE
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
X Requires new rule making, complete Part V.
Legislative Contact: Clinton McCarthy Phone: 360-786-7319 Date: 01/13/2025
Agency Preparation: Cale Zimmerman Phone: (360) 902-0507 Date: 01/15/2025
Agency Approval: Emily Fitzgerald Phone: (360) 902-8780 Date: 01/15/2025
OFM Review: Megan Tudor Phone: (360) 890-1722 Date: 01/21/2025
Form FN (Rev 1/00) 197,038.00 Request # 25-005-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5109 SB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency by
section number.
In 2003, the legislature established the Mortgage Lending Fraud Prosecution Account (MLFPA) in order to fund criminal
prosecution of fraudulent activities related to mortgage lending. The Department of Financial Institutions (DFI) has
administered the MLFPA since its creation in 2003. The original legislation had an expiration of June 30, 2006, which was
amended in 2006, 2011, 2016, and 2021. The current date of expiration for the MLFPA is June 30, 2027. Funding for the
MLFPA is generated by a $1 charge assessed when a deed of trust is recorded. This proposed legislation seeks to increase
the $1 charge to $5 and removes the sunset clause.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate, the
detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived. Explanation
of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
The MLFPA is funded by a $1 surcharge collected by the county auditor at the time of recording each deed of trust. The
proposed legislation would increase that fee to $5 and remove the sunset clause. The County Auditor is permitted to retain
up to 5% of the funds collected to administer the process of collecting the surcharge; therefore the MLFPA receives at
least 95% of the total collected surcharges. The estimated cash receipts reflect the Department’s portion of the gross
surcharge collections as projected quarterly by the Office of Financial Management (OFM). Variances from quarter to
quarter are covered by the existing fund balance. Current forecasts from OFM extend to fiscal year 2029. Projections for
fiscal year 2030 and beyond are an average of fiscal years 2026 - 2029.
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result in
the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the expenditure
impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing functions.
DFI administers the MLFPA and authorizes expenditures from this fund in the form of contracts with prosecutors’ offices.
DFI does not expend MLFPA funds for its own regulatory activities. From 2022 to present, funds from the MLFPA have
been used to resolve 30 cases resulting in more than $500,000 in restitution ordered. Due to the complexity and
specialization of mortgage fraud cases, most of these would unlikely have seen prosecution.
The proposed legislation would increase the funding for the MLFPA account. Increased funding could result in contracts
with additional prosecutors' offices and/or an increase in the number of cases being investigated. Expanded contracting
efforts could also result in an increased need for in DFI staff time to manage the MLFPA account, but those costs would be
absorbed.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE
III. C - Operating FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I
and Part IIIA.
NONE
Mortgage lending fraud acc. 102-Department of Financial Institutions
Form FN (Rev 1/00) 197,038.00 Request # 25-005-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5109 SB
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.
NONE
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.
No, the Department of Financial Institutions does not anticipate rulemaking.
Mortgage lending fraud acc. 102-Department of Financial Institutions
Form FN (Rev 1/00) 197,038.00 Request # 25-005-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5109 SB
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce
Bill Number: 5109 SB Title: Mortgage lending fraud acc.
Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
Cities:
X Counties: The fee county auditors collect at the time of recording each deed of trust is increased from $1 to $5, and auditors retain
5% of the amount collected.
Special Districts:
Specific jurisdictions only:
Variance occurs due to:
Part II: Estimates
No fiscal impacts.
Expenditures represent one-time costs:
Legislation provides local option:
Key variables cannot be estimated with certainty at this time:
Estimated revenue impacts to:
Jurisdiction FY 2026 FY 2027 2025-27 2027-29 2029-31
County 55,400 68,575 123,975 194,797 159,386
TOTAL $ 55,400 68,575 123,975 194,797 159,386
GRAND TOTAL $ 478,158
Estimated expenditure impacts to:
None
Part III: Preparation and Approval
Fiscal Note Analyst: Hailey Brown Phone: 360-725-5035 Date: 01/21/2025
Leg. Committee Contact: Clinton McCarthy Phone: 360-786-7319 Date: 01/13/2025
Agency Approval: Alice Zillah Phone: 360-725-5035 Date: 01/21/2025
OFM Review: Megan Tudor Phone: (360) 890-1722 Date: 01/21/2025
Page 1 of 2 Bill Number: 5109 SB
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Description of the bill with an emphasis on how it impacts local government.
The proposed legislation increases the fee county auditors collect at the time of recording each deed of trust from $1 to
$5.
The auditor retains up to 5% of the collected fee, only for the purpose of administering the collection. The remaining funds
shall be transmitted monthly to the state treasurer who will deposit the funds into the Mortgage Lending Fraud Prosecution
Account (MLFPA) created in RCW 43.320.140.
B. SUMMARY OF EXPENDITURE IMPACTS
Expenditure impacts of the legislation on local governments with the expenditure provisions identified by section number and when
appropriate, the detail of expenditures. Delineated between city, county and special district impacts.
This bill will have no expenditure impact on County Auditors and therefore no expenditure impact on local governments.
According to the Washington State Association of County Auditors, this bill reflects current staff practice and does not
trigger additional vendor fees that would create costs for counties.
C. SUMMARY OF REVENUE IMPACTS
Revenue impacts of the legislation on local governments, with the revenue provisions identified by section number, and when
appropriate, the detail of revenue sources. Delineated between city, county and special district impacts.
The proposed legislation would increase the funds auditors will retain for each deed of trust filed. This bill seeks to
increase the $1 charge to $5. The County Auditor is permitted to retain up to 5% of the funds collected to administer the
process of collecting the surcharge; therefore the MLFPA receives at least 95% of the total collected surcharges.
The estimated cash receipts reflect the County Auditors’ portion of the gross surcharge collections as projected quarterly
by the Office of Financial Management (OFM). Variances from quarter to quarter are covered by the existing fund
balance. Current forecasts from OFM extend to fiscal year 2029. Projections for fiscal year 2030 and beyond are an
average of fiscal years 2026 - 2029. This bill results in a positive revenue impact to County Auditors.
SOURCES:
Washington State Association of County Auditors
Department of Financial Institutions Fiscal Note, SB 5109 (2025)
Page 2 of 2 Bill Number: 5109 SB
FNS060 Local Government Fiscal Note
Multiple Agency Ten-Year Analysis Summary
Bill Number Title
5109 SB Mortgage lending fraud acc.
This ten-year analysis is limited to the estimated cash receipts associated with the proposed tax or fee increases.
Estimated Cash Receipts
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2026-35
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 TOTAL
Department of Financial Institutions 1,052,610 1,302,940 1,695,110 2,006,055 1,514,179 1,514,179 1,514,179 1,514,179 1,514,179 1,514,179 15,141,789
FNS067 Multiple Agency Ten-Year Analysis Summary 1
Ten-Year Analysis
Bill Number Title Agency
5109 SB Mortgage lending fraud acc. 102 Department of Financial Institutions
This ten-year analysis is limited to agency estimated cash receipts associated with the proposed tax or fee increases. The Office of Financial Management
ten-year projection can be found at http://www.ofm.wa.gov/tax/default.asp .
Estimates
No Cash Receipts Partially Indeterminate Cash Receipts Indeterminate Cash Receipts
Estimated Cash Receipts
Name of Tax or Fee Acct Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2026-35
Code 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 TOTAL
Mortgage Loan Fraud Prosecution 07A 1,052,610 1,302,940 1,695,110 2,006,055 1,514,179 1,514,179 1,514,179 1,514,179 1,514,179 1,514,179 15,141,789
Account Recording Fee
Total 1,052,610 1,302,940 1,695,110 2,006,055 1,514,179 1,514,179 1,514,179 1,514,179 1,514,179 1,514,179 15,141,789
Biennial Totals 2,355,550 3,701,165 3,028,358 3,028,358 3,028,358 15,141,789
Narrative Explanation (Required for Indeterminate Cash Receipts)
In 2003, the legislature established the Mortgage Lending Fraud Prosecution Account (MLFPA) in order to fund criminal prosecution of fraudulent activities related to
mortgage lending. The Department of Financial Institutions (DFI) has administered the MLFPA since its creation in 2003. The original legislation had an expiration of June 30,
2006, which was amended in 2006, 2011, 2016, and 2021. The current date of expiration for the MLFPA is June 30, 2027. Funding for the MLFPA is generated by a $1
charge assessed when a deed of trust is recorded. This proposed legislation seeks to increase the $1 charge to $5 and removes the sunset clause.
The MLFPA is funded by a $1 surcharge collected by the county auditor at the time of recording each deed of trust. The proposed legislation would increase that fee to $5
and remove the sunset clause. The County Auditor is permitted to retain up to 5% of the funds collected to administer the process of collecting the surcharge; therefore the
MLFPA receives at least 95% of the total collected surcharges. The estimated cash receipts reflect the Department’s portion of the gross surcharge collections as projected
quarterly by the Office of Financial Management. Variances from quarter to quarter are covered by the existing fund balance. Current forecasts from OFM extend to fiscal
year 2029. Projections for fiscal year 2030 and beyond are an average of fiscal years 2026 - 2029.
FNS066 Ten-Year Analysis 1
Ten-Year Analysis
Bill Number Title Agency
5109 SB Mortgage lending fraud acc. 102 Department of Financial Institutions
Agency Preparation: Cale Zimmerman Phone: (360) 902-0507 Date: 1/15/2025 2:11:01 pm
Agency Approval: Emily Fitzgerald Phone: (360) 902-8780 Date: 1/15/2025 2:11:01 pm
OFM Review: Phone: Date:
FNS066 Ten-Year Analysis 2
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