Today, the Department of Financial Institutions released highlights of legislation approved by the Legislature and signed by Governor Christine Gregoire during the 2006 legislative session. The following three bills were introduced and passed by the department.
House Bill 2338/Senate Bill 6167
Initiated by the department, this bill delays the expiration date of the Mortgage Lending Fraud Prosecution Account until June 30, 2011. The prosecution fund was created in 2003. The fund aids prosecutors in bringing mortgage lending fraud cases to trial. A $1 fee is charged for each recording of a deed of trust. The fees are deposited into the fund which is held by the State Treasurer and managed by DFI.
Sponsors: Representative Steve Kirby, 29th Legislative District, Financial Institutions & Insurance Committee Chair; Senator Darlene Fairley, 32nd Legislative District, Financial Institutions, Housing & Consumer Protection Committee Chair
Engrossed House Bill 2340/Engrossed Substitute Senate Bill 6166
Initiated by the department, this bill provides for an annual expiration of mortgage broker licenses and creates a renewal process. It also expands the time-frame during which the Director may conduct compliance examinations of mortgage broker licensees. The bill requires licensing of loan originators, and applies prohibited practice standards to loan originators.
Sponsors: Representative Steve Kirby, 29th Legislative District, Financial Institutions & Insurance Committee Chair; Senator Darlene Fairley, 32nd Legislative District, Financial Institutions, Housing & Consumer Protection Committee Chair
Substitute Senate Bill 6168/Substitute House Bill 2339
Initiated by the department, this bill modernized statutes to allow the creation of safe and sound Business Development Corporations (BDCs). BDCs are financial institutions and others that form a group to invest in local communities and foster growth and promote economic development in Washington State.
Sponsors: Senator Darlene Fairley, 32nd Legislative District, Financial Institutions, Housing & Consumer Protection Committee Chair; Representative Steve Kirby, 29th Legislative District, Financial Institutions & Insurance Committee Chair