CERTIFICATION OF ENROLLMENT

                  SUBSTITUTE SENATE BILL 5432

                        53rd Legislature

                      1993 Regular Session

Passed by the Senate March 10, 1993   YEAS 48   NAYS 0 President of the Senate Passed by the House April 7, 1993   YEAS 98   NAYS 0

CERTIFICATE I, Marty Brown, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SUBSTITUTE SENATE BILL 5432 as passed by the Senate and the House of Representatives on the dates hereon set forth.

Speaker of the        House of Representatives

Secretary

Approved Place Style On Codes above, and Style Off Codes below.

FILED

Governor of the State of Washington

Secretary of State                        State of Washington

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                                            SUBSTITUTE SENATE BILL 5432

                              _______________________________________________

                                                       Passed Legislature - 1993 Regular Session

State of Washington                              53rd Legislature                             1993 Regular Session

By Senate Committee on Labor & Commerce (originally sponsored by Senators Pelz, Prentice, Moore, Franklin, Bauer, Wojahn, Fraser and Skratek)

Read first time 02/22/93.

Studying discrimination based on race and national origin in home mortgage lending.

          AN ACT Relating to a study of discrimination based on race and national origin in mortgage lending; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  The federal home mortgage disclosure act has recently required depository institutions to analyze and make available first-time loan and rejection rates by race, national origin, and income, among other factors.  According to these data, some depository institutions operating in Washington state have rejected a disproportionate number of mortgage applications from minorities, even when income is taken into account.  With this study, the legislature intends to support the lending institutions in their attempts to remedy this problem.

NEW SECTION. Sec. 2.  The supervisor of banking and supervisor of savings and loan associations shall perform a study of the problem of discrimination based on race and national origin in home mortgage lending after 1990.  The study must address the nature of the problem and why it is occurring, what depository institutions around the country and in this state are doing to solve the problem, and suggest what depository institutions operating in this state could do to solve the problem.  The supervisor of banking and supervisor of savings and loan associations shall report the results of the study to the committees on financial institutions and insurance of the house of representatives and the committee on labor and commerce of the senate by December 1, 1993.  For purposes of this section, the term "depository institution" means a commercial bank, savings bank, savings and loan association, building and loan association, homestead association including cooperative banks, or credit union that makes federally related mortgage loans as determined by the federal reserve board, mortgage banking subsidiary of a bank holding company or savings and loan holding company, or savings and loan service corporation that originates or purchases loans.

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