Message from Charlie Clark

No big legislative changes for 2019 session...yet.

Another legislative session has begun. What will this session bring to the laws you comply with? When Consumer Services requests legislation, it is often because we have found a statute to be inadequate for today’s needs. It may be that existing law no longer adequately protects consumers, no longer works for businesses providing the financial service, or no longer adequately captures either technological changes or the business norm for the industry. We consider you, our license holders, our partners in ensuring Washington’s financial services industry is safe, vibrant, and innovative - providing the services consumers want in a safe and effective way. This year, Consumer Services did not submit any agency request legislation. We are, however, regularly approached each legislative session to comment on proposed legislation affecting you.

Given the size of the industry and its impact on an economy, both locally and nationally, in the years since the mortgage crisis, the state’s Consumer Loan Act, chapter 31.04 RCW (CLA), has pretty consistently received the legislature’s attention. Both at our request to keep pace with this dynamic industry and by others. For example, last session, the legislature implemented a regulatory program over student education loan servicers in the CLA. As you know, student education loans have been receiving a lot of attention around the country. As a result, we were busy in 2018 with rulemaking, licensing the servicers, and creating a new examination work program for that program. Often, with the mortgage market, the Mortgage Broker Practices Act, chapter 19.146 RCW (MBPA), is amended along with the CLA. Because the CLA includes all lending and brokering, the MBPA has been amended a bit less frequently. Even less often amended are the Uniform Money Services Act, chapter 19.230 RCW; the payday loan statute (Check Cashers and Sellers Act), chapter 31.45 RCW; and the Escrow Agent Registration Act, chapter 18.44 RCW.

Despite Consumer Services not bringing agency request legislation this year, others may advance proposed bills related to your industries. In years past, we have often been approached during a legislative session with great ideas for changes in the law. We are happy to meet with proponents of legislation impacting our operations or our licensees. In some cases, we have been able to include those ideas in our own agency request legislation in the following legislative session. Regardless, any discussions about improving the laws we administer and you comply with can be very productive. We will see what this session brings!