Senate Bill 5109, Mortgage Lending Fraud Prosecution Account (Washington, 2025 Regular Session)

Summary

Senate Bill 5109, State of Washington, 69th Legislature, 2025 Regular Session, by Senators Kauffman, Stanford, Lovelett, and Nobles, prefiled 12/23/24, read first time 01/13/25 and referred to Committee on Business, Financial Services & Trade. The act relates to the mortgage lending fraud prosecution account and amends RCW 36.22.181 and 43.320.140. Section 1 sets the surcharge the county auditor charges at the time of recording of each deed of trust and lets the auditor retain up to five percent of the funds collected. Remaining funds go monthly to the state treasurer for deposit into the account, and expenditures are limited to criminal prosecution of mortgage lending fraud crimes.

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Full text

     S-0115.1

                               SENATE BILL 5109


     State of Washington       69th Legislature       2025 Regular Session

     By Senators Kauffman, Stanford, Lovelett, and Nobles

     Prefiled 12/23/24. Read first time 01/13/25.    Referred to Committee
     on Business, Financial Services & Trade.




1        AN ACT Relating to the mortgage lending fraud         prosecution
2    account; and amending RCW 36.22.181 and 43.320.140.


3    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 4       Sec. 1. RCW 36.22.181 and 2021 c 31 s 1 are each amended to read
 5   as follows:
 6       (1) Except as provided in subsection (2) of this section, a
 7   surcharge of ((one dollar)) $5 shall be charged by the county auditor
 8   at the time of recording of each deed of trust, which will be in
 9   addition to any other charge authorized by law. The auditor may
10   retain up to five percent of the funds collected to administer
11   collection. The remaining funds shall be transmitted monthly to the
12   state treasurer who will deposit the funds into the mortgage lending
13   fraud prosecution account created in RCW 43.320.140. The department
14   of financial institutions is responsible for the distribution of the
15   funds in the account and shall, in consultation with the attorney
16   general and local prosecutors, develop rules for the use of these
17   funds to pursue criminal prosecution of fraudulent activities within
18   the mortgage lending process.
19       (2) The surcharge imposed in this section does not apply to
20   assignments or substitutions of previously recorded deeds of trust.
21       (((3) This section expires June 30, 2027.))
                                     p. 1                           SB 5109
 1       Sec. 2.   RCW 43.320.140 and 2021 c 31 s 2 are each amended to
 2   read as follows:
 3       (((1))) The mortgage lending fraud prosecution account is created
 4   in the custody of the state treasurer. All receipts from the
 5   surcharge imposed in RCW 36.22.181, except those retained by the
 6   county auditor for administration, must be deposited into the
 7   account. Except as otherwise provided in this section, expenditures
 8   from the account may be used only for criminal prosecution of
 9   fraudulent activities related to mortgage lending fraud crimes. Only
10   the director of the department of financial institutions or the
11   director's designee may authorize expenditures from the account. The
12   account is subject to allotment procedures under chapter 43.88 RCW,
13   but an appropriation is not required for expenditures.
14       (((2) This section expires June 30, 2027.))

                                  --- END ---




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