Subject of Possible Rule Making: New rule regarding periodic reports; amending WAC 208-680F-020 concerning permissible securities for purposes of RCW 18.44.201; new rule defining RESPA violations as unfair and deceptive practices.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 18.44.410, [18.44].201.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: A new rule concerning periodic reporting will help the division monitor compliance with chapter 18.44 RCW and the regulations adopted thereunder. Amendments to WAC 208-680F-020 are needed to clarify the types of securities that may be substituted for the errors and omissions policy required by RCW 18.44.201. A new rule would state that the failure to comply with an applicable provision of RESPA will constitute an unfair and deceptive practice under RCW 18.44.301. This will clarify the director's authority to enforce RESPA where appropriate.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

     Process for Developing New Rule: The division will seek input from the Escrow Commission and other licensed escrow agents and officers concerning these rules. The division may also discuss any proposed rules with other interested parties and regulatory agencies.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting William M. Beatty, Securities Division, Department of Financial Institutions, P.O. Box 9033, Olympia, WA 98507-9033, (360) 902-8760, fax (360) 704-6923, bbeatty@dfi.wa.gov, Securities Division website http://www.dfi.wa.gov/sd.

November 17, 2003

Deborah R. Bortner

Director of Securities

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