Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Appropriations Committee
SB 5109
Brief Description: Concerning the mortgage lending fraud prosecution account.
Sponsors: Senators Kauffman, Stanford, Lovelett and Nobles.
Brief Summary of Bill
  • Increases the surcharge on recording deeds of trust, which supports the Mortgage Lending Fraud Prosecution Account (Account), from $1 to $5.
  • Removes sunset provisions related to the surcharge and the Account, which are set to expire on June 30, 2027.
Hearing Date: 3/17/25
Staff: Jessica Van Horne (786-7288).
Background:

When a county auditor records a document, certain fees and surcharges are collected to support various governmental purposes depending on the type of document recorded.  These surcharges include a $1 surcharge collected at the time of recording each deed of trust.  The $1 surcharge does not apply to assignments or substitutions of previously recorded deeds of trust.  The county auditor may retain up to 5 percent of the $1 surcharge for costs to administer the surcharge.  The remaining revenues are deposited into the Mortgage Lending Fraud Prosecution Account (Account), which is a nonappropriated account administered by the Department of Financial Institutions (DFI).  The DFI may use expenditures from the Account for criminal prosecution of fraudulent activities related to mortgage lending fraud crimes.  Both the $1 surcharge and the Account are set to expire June 30, 2027. 
Summary of Bill:

The surcharge collected on deeds of trust for deposit into the Account is increased from $1 to $5.  The sunset provisions for both the surcharge and the Account are removed.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.