[Filed August 3, 2022, 11:00 a.m.]
Title of Rule and Other Identifying Information: Chapter 460-33A WAC, Regulations concerning securities involving mortgages, trust deeds or property sales contracts.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The securities division proposes to repeal the entirety of chapter 460-33A WAC, which creates an optional method of registration for mortgage paper securities. The last issuer to register an offering of mortgage paper securities under these rules was in 2012. Changes in federal law over the past 10 years, including the Jumpstart Our Business Startups (JOBS) Act of 2012, have diminished the usefulness of the rules contained in chapter 460-33A WAC.
Reasons Supporting Proposal: Repealing chapter 460-33A WAC will remove an outdated section of the regulations that are administered by the securities division. This will streamline the regulations it administers and allow the regulations to reflect modern practice.
Statutory Authority for Adoption: RCW 21.20.450
Statute Being Implemented: Chapter 21.20
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of financial institutions, securities division, governmental.
Name of Agency Personnel Responsible for Drafting: Patrick Stickney, 150 Israel Road S.W., Tumwater, WA 98501; Implementation: Faith Anderson, 150 Israel Road S.W., Tumwater, WA 98501, 360-902-8760; and Enforcement: William Beatty, 150 Israel Road S.W., Tumwater, WA 98501, 360-902-8760.
This notice meets the following criteria to use the expedited repeal process for these rules:
The rule is no longer necessary because of changed circumstances.
Explanation of the Reason the Agency Believes the Expedited Rule-Making Process is Appropriate: RCW 34.05.353
states that an agency may file notice for the expedited repeal of a rule if "[t]he rule is no longer necessary because of changed circumstances." It has been more than 10 years since an issuer has applied to register an offering under chapter 460-33A WAC, and federal regulatory changes have rendered the rule obsolete. These changed circumstances thus justify the expedited repeal of the rule.
THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Patrick Stickney, Department of Financial Institutions, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033, phone 360-902-8760, email Patrick.Stickney@dfi.wa.gov, AND RECEIVED BY October 3, 2022.
August 3, 2022
The following chapter of the Washington Administrative Code is repealed:
Registration not required.
Optional registration procedures for mortgage paper securities.
Contents of the general offering circular.
Contents and filing of the specific offering circular.
Minimum investor suitability requirements.
Limitations on the use of optional registration of this chapter.
Disclosure requirements in the sale of real estate owned property.
Real estate broker's opinion of value in the sale of real estate owned property.
Net worth or bond requirement.
Origination and assignment.
Registration and examination of mortgage broker-dealers.
Expiration of mortgage broker-dealer registration, renewal procedure.
Registration and examination of mortgage securities salespersons.
Expiration of mortgage securities salesperson registration, renewal procedure.
Dishonest and unethical practices—Mortgage broker-dealers.
Fiduciary duty—Mortgage broker-dealers.
Financial statements and annual reports.
Books and records.
Access to loan records by investors.
Preservation of records.
Notice of changes by mortgage broker-dealers.
Notice of complaint.