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, after the auditor retains up to five percent for administration, will be 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, from the relevant sections of the law, allowing the provisions to remain in effect indefinitely. The mortgage lending fraud prosecution account will continue to be funded by the surcharge, and expenditures from the account will be strictly limited to criminal prosecutions of mortgage lending fraud crimes, with authorization required from the director of the Department of Financial Institutions or their designee.

Statutes affected:
Original Bill: 36.22.181, 43.320.140