FINAL BILL REPORT

                 SHB 1348

                         C 238 L 95

                     Synopsis as Enacted

Brief Description:  Regulating escrow agents.

Sponsors:  House Committee on Financial Institutions & Insurance (originally sponsored by Representatives L. Thomas, Cole, Fuhrman and Wolfe; by request of Department of Licensing).

House Committee on Financial Institutions & Insurance

Senate Committee on Financial Institutions & Housing

Background:  Escrow agents close real property transactions, acting as neutral third parties  to effectuate the sale or transfer of real property between buyers and sellers.  Escrow agents are certified by the Department of Licensing.  An escrow agent must be supervised by an escrow officer, who is licensed by the Department of Licensing.  An escrow agent must comply with other statutory requirements, such as obtaining a fidelity bond and an errors and omissions policy.

The Escrow Commission, comprised of the director of the Department of Licensing and five members from the escrow industry appointed by the Governor, advises the Department of Licensing regarding the needs and regulation of the escrow profession.

Summary:   Regulation of escrow agents and officers is transferred from the Department of Licensing to the Department of Financial Institutions.  The director of the Department of Financial Institutions, rather than the Governor, appoints the industry representatives of the Escrow Commission.   

The Department of Financial Institutions' Banking Examination Fund includes fees received for examination and regulation of escrow agents.

Votes on Final Passage

House     98 0

Senate    45 0 (Senate amended)

House     95 0 (House concurred)

Effective:  July 1, 1995