Washington State Department of Financial Institutions

News Release

Friday, June 13, 2008

Lyn Peters, Director of Communications, Department of Financial Institutions
PH (360) 902-8731 lpeters@dfi.wa.gov

Scott Jarvis, Director, Department of Financial Institutions
PH 360.902.8707, sjarvis@dfi.wa.gov


Consumer Protection A DFI Priority In Enforcement Of New Mortgage Industry Regulatory Legislation Now In Effect

OLYMPIA - – “DFI takes consumer protection very seriously,” Department of Financial Institutions (DFI) Director of Scott Jarvis said. “With yesterday’s enactment of several pieces of mortgage industry related legislation, DFI is now positioned to offer even stronger protection for Washington residents.”

State legislators approved several bills relating to the mortgage industry and its regulation during the 2008 session. Governor Gregoire and the Legislature responded to the negative impact of subprime lending and subsequent home foreclosures with the emergency enactment of SB 6272. This bill provides free counseling to Washington homeowners in foreclosure distress and residents seeking to purchase a home.

The Washington State Department of Financial Institutions is conducting rulemaking sessions to implement these new laws. The rulemaking is conducted with input from the affected industry stakeholders in an effort to ensure economic stability of the affected businesses while protecting consumers. For more information about DFI’s mortgage industry rulemaking visit http://www.dfi.wa.gov/cs/rulemaking.htm.

Below is a summary of mortgage related legislation stemming from the 2008 Legislative Session DFI is implementing and overseeing:

HB 2770 – Homeownership Security (Governor’s Bill - Effective Date 6/12/2008)

SB 6272 – Financial Literacy (Governor’s Bill-Effective Date 2/11/2008)

SB 6381 – Mortgage Brokers (Effective Date 6/12/2008)

SB 6471 – Loan Regulations (Effective Date 6/12/2008)

SB 6711 – Smart Homeownership Choices (Effective Date 6/12/2008)

For more information about the 2008 Legislative Session and resulting legislation, please visit http://dfi.wa.gov/about/2008_legislature.htm.

About DFI
www.dfi.wa.gov ▪ 360.902.8700 ▪ 877.746.4334 ▪ En Espaņol 877.976.4422
The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders, and securities brokers and dealers. The department has won numerous awards for its financial literacy and outreach programs developed to protect consumers from financial fraud. In addition to posting information about licensees and administrative actions, the DFI’s Web site features consumer tips on a variety of financial fraud-related topics. For more financial education news, visit DFI’s Financial Literacy Blog “Money Talks” at http://finlit.blogspot.com/.

SB 6711 Program Parameters
View program parameters (PDF)* for SB 6711.

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