FINAL BILL REPORT

SB 6134

C 36 L 14

Synopsis as Enacted

Brief Description: Addressing nondepository institutions regulated by the department of financial institutions.

Sponsors: Senators Hobbs, Benton, Hatfield, Mullet and Fain; by request of Department of Financial Institutions.

Senate Committee on Financial Institutions, Housing & Insurance

House Committee on Business & Financial Services

Background: The Department of Financial Institutions (DFI) has the authority to enforce laws and rules related to the licensing and regulation of escrow agents, mortgage brokers, consumer loan companies, check cashers and sellers, and payday lenders.

Statute of Limitations. When DFI seeks to enforce laws and regulations within its jurisdiction, there is no statute of limitation as to when the agency can bring an action. RCW 4.16.160 specifies that there is no statute of limitations to actions brought in the name or for the benefit of the state, except for construction-related claims for which the statute of limitations is six years.

Nationwide Registry. The Nationwide Mortgage Licensing System (NMLS) was created in 2004 by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. On July 30, 2008, President Bush signed House Resolution 3221 (P.L. 110-289) into law. Title V of House Resolution 3221 is referred to as the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). Under the SAFE Act, all states must have a system of licensing in place for residential mortgage loan originators. Currently, all consumer loan companies and mortgage brokers that do business in several states must use the NMLS and Registry.

For consumer loan companies and mortgage brokers, information may be shared by the Director of DFI with other governmental agencies and regulatory associations without a loss of any privilege or confidentiality under the law.

Summary: For actions brought by DFI other than those brought in the name of the state or to benefit the state, the statute of limitations is five years.

Payday lenders and money transmitters that are multistate businesses must provide financial reports electronically.

Information that DFI receives from other regulators under the Check Cashers and Sellers Act is considered confidential under state and federal law.

Language regarding fingerprinting that DFI does for the Federal Bureau of Investigation and the Washington State Patrol is clarified.

Votes on Final Passage: