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Senate Bill Report — SB 5109, Mortgage Lending Fraud Prosecution Account (2025)

Summary

Senate Bill Report on SB 5109, as of January 23, 2025, titled an act relating to the mortgage lending fraud prosecution account. The sponsors are Senators Kauffman, Stanford, Lovelett and Nobles. The bill increases the charge county auditors collect when recording a deed of trust and removes the sunset provisions set to expire on June 30, 2027. The report says the account was established in 2003 and the Department of Financial Institutions distributes the funds for criminal prosecution of mortgage lending fraud. In the public testimony summary, a supporter says the fund paid for two FTEs in 2011 and now covers half an FTE. The bill takes effect ninety days after adjournment of the session in which it is passed.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2025-01-29
Case
2025 01 29 A32584 D276638 Bill Report 5109 Sbr Bft Ta 25

Cite this document

“Senate Bill Report — SB 5109, Mortgage Lending Fraud Prosecution Account (2025).” Original at app.leg.wa.gov, dated 2025-01-29. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-01-29-2025-01-29-a32584-d276638-bill-report-5109-sbr-bft-ta-25/, SHA-256 a93fb625f659fee205f38e77bee8fcf4d06621b9f57a1db29b0b02c36eb454ea.

Full text

                            SENATE BILL REPORT
                                  SB 5109

                                      As of January 23, 2025

Title: An act relating to the mortgage lending fraud prosecution account.

Brief Description: Concerning the mortgage lending fraud prosecution account.

Sponsors: Senators Kauffman, Stanford, Lovelett and Nobles.

Brief History:
     Committee Activity: Business, Financial Services & Trade: 1/23/25.


                                     Brief Summary of Bill
           • Increases the charge to support the Mortgage Lending Fraud Prosecution
             Account at the time of recording a deed of trust by county auditors from
             $1 to $5.
           • Removes sunset provisions related to this Mortgage Lending Fraud
             Prosecution Account that are set to expire on June 30, 2027.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Clint McCarthy (786-7319)

     Background: The Mortgage Lending Fraud Prosecution Account (account) was
     established in 2003, and authorized county auditors charge $1 at the time of recording each
     deed of trust to fund the account. The auditor is allowed to retain 5 percent of the funds that
     they collect to administer the collection of the fund. The remaining funds are deposited into
     the account. The Department of Financial Institutions distributes the funds and develops
     rules for the use of the funds to pursue criminal prosecution of fraudulent activities as part
     of the mortgage lending process. The account is set to expire on June 30, 2027.

     Summary of Bill: The charge collected at the recording time of each deed of trust by




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 5109
     county auditors is increased from $1 to $5. The sunset provisions for the account are
     removed.

     Appropriation: None.

     Fiscal Note: Available.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.

     Staff Summary of Public Testimony: PRO: This bill will make the prosecution of
     mortgage fraud stronger in the state. This fee has not been increased since 2003. It is a
     consumer protection bill. When you consider AI tools and more sophisticated bad actors,
     these funds will assist the prosecution of fraud. These are difficult cases to prosecute and
     take time and money. In the two decades since the establishment of the account, the fee has
     not changed. The fund was enough to pay for two FTEs in 2011. In current day, it covers
     half an FTE. Increasing this fee and removing the sunset provision will allow us to go after
     these scams.

     Persons Testifying: PRO: Senator Claudia Kauffman, Prime Sponsor; Patrick Hinds, King
     County Prosecuting Attorney's Office; Hugo Torres, King County Prosecuting Attorney's
     Office.

     Persons Signed In To Testify But Not Testifying: No one.




Senate Bill Report                            -2-                                        SB 5109

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Our copy
2025-01-29_a32584_d276638_bill-report-5109-sbr-bft-ta-25.pdf
Original
app.leg.wa.gov
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