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 monthly to the state treasurer, who will deposit them 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 clarifies that the surcharge does not apply to assignments or substitutions of previously recorded deeds of trust.

Furthermore, the bill removes the expiration date of June 30, 2027, from both the section regarding the surcharge and the mortgage lending fraud prosecution account, allowing these provisions to remain in effect indefinitely. The account will continue to be used exclusively for the criminal prosecution of mortgage lending fraud crimes, with expenditures authorized solely by the director of the Department of Financial Institutions or their designee.

Statutes affected:
Original Bill: 36.22.181, 43.320.140