The bill amends existing state law to continue and make ongoing a $5 surcharge charged by county auditors when recording each deed of trust (not charged on assignments or substitutions of previously recorded deeds of trust). County auditors may retain up to 5% of surcharge receipts for collection costs, and must transmit the remainder monthly to the state treasurer for deposit into a newly described mortgage lending fraud prosecution account (RCW 43.320.140 as amended). The funds in that account may be used only for criminal prosecution of fraudulent activities related to mortgage lending fraud, unless otherwise provided, and only the director of the Department of Financial Institutions (DFI) or the director’s designee may authorize expenditures. The bill also directs DFI to distribute the account funds and to develop rules, in consultation with the Attorney General and local prosecutors, for use of the funds to pursue criminal mortgage lending fraud prosecutions. The account is subject to allotment procedures under chapter 43.88 RCW and an appropriation is not required for expenditures. The amendments remove prior statutory expiration language that had set June 30, 2027, as an end date for the amended sections. The extracted material does not include an effective date, fiscal impact details, or the full original statutory text.

If enacted, anyone recording a deed of trust would pay an extra $5 fee at the time of recording (assignments or substitutions of previously recorded deeds of trust are excluded). County auditors would collect that fee, keep up to 5% to cover their administrative costs, and send the rest monthly to a state account controlled by the state treasurer; the bill removes an earlier June 30, 2027 expiration, so the fee and account would continue beyond that date. The Department of Financial Institutions would get responsibility for distributing those account funds and, working with the Attorney General and local prosecutors, would set rules and authorize spending to support criminal prosecutions of mortgage lending fraud; only the DFI director or a designee could approve expenditures. The account is subject to state allotment procedures and does not require a separate legislative appropriation to spend, which likely makes funding available directly for prosecutions. The bill text does not show an effective date or any fiscal impact estimates.