The bill amends existing laws regarding the mortgage lending fraud prosecution account in Washington State. It increases the surcharge charged by county auditors for recording each deed of trust from one dollar to five dollars. The funds collected from this surcharge will be transmitted to the state treasurer and deposited into the mortgage lending fraud prosecution account. The Department of Financial Institutions, in consultation with the Attorney General and local prosecutors, will develop rules for the use of these funds to pursue criminal prosecutions related to fraudulent activities in the mortgage lending process. Additionally, the bill removes the expiration date of June 30, 2027, for both the surcharge and the account, allowing them to continue indefinitely.

The bill ensures that all receipts from the surcharge, except for the portion retained by the county auditor for administration, are deposited into the mortgage lending fraud prosecution account. Expenditures from this account are strictly limited to criminal prosecutions of mortgage lending fraud crimes and can only be authorized by the director of the Department of Financial Institutions or their designee. The account will be subject to allotment procedures, but no appropriation is required for expenditures, streamlining the process for utilizing these funds in prosecuting mortgage fraud cases.

Statutes affected:
Original Bill: 36.22.181, 43.320.140