PREPROPOSAL STATEMENT OF INQUIRY
Subject of Possible Rule Making: The securities division is considering amending and/or supplementing the rules set forth in chapter 460-33A WAC, which provide an optional method of registration for "mortgage paper securities" as defined in WAC 460-33A-015(4).
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 21.20.060, [21.20].070, [21.20].090, [21.20].100, [21.20].180, [21.20].210, [21.20].250, [21.20].270, and [21.20].450.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: It has been several years since the securities division evaluated the rules set forth in chapter 460-33A WAC. The division is considering amending and/or supplementing these rules to enhance their effectiveness in providing protection to the investing public and to take into consideration current practices.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Offerings of mortgage paper securities registered under the rules set forth in chapter 460-33A WAC are ordinarily offered and sold in reliance upon an exemption from federal registration with the Securities and Exchange Commission (SEC). The SEC does, however, maintain authority to enforce anti-fraud laws in exempt securities offerings. None of the broker-dealers registered to sell mortgage paper securities under the rules set forth in chapter 460-33A WAC are registered with the SEC or the Financial Industry Regulatory Authority (FINRA). Thus, the securities division is the primary regulator of these types of offerings and broker-dealers in this state and there is no necessity to coordinate our rules with either the SEC or FINRA.
Process for Developing New Rule: The division is soliciting comments from interested persons and those already registered to sell mortgage paper securities under the rules set forth in chapter 460-33A WAC.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Faith L. Anderson, Department of Financial Institutions, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033, phone (360) 725-7825, fax (360) 704-6480, e-mail firstname.lastname@example.org.
June 1, 2009
Michael E. Stevenson
Director of Securities