# RCW 19.146.050: RCW 19.146.050: Moneys for third-party provider services deemed in trust—Deposit of moneys in trust account—Use of trust account—Rules—Tax treatment

> Washington · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S050

## Section

- **Citation:** RCW 19.146.050
- **Heading:** RCW 19.146.050: Moneys for third-party provider services deemed in trust—Deposit of moneys in trust account—Use of trust account—Rules—Tax treatment
- **Jurisdiction:** Washington
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Washington Code / Title 19 / Chapter 146 / Section 050

## Text

(1) All moneys received by a mortgage broker from a borrower for payment of third-party provider services shall be deemed as held in trust immediately upon receipt by the mortgage broker. A mortgage broker shall deposit, prior to the end of the third business day following receipt of such trust funds, all such trust funds in a trust account of a federally insured financial institution located in this state. All trust account funds collected under this chapter must remain on deposit in a trust account in the state of Washington until disbursement. The trust account shall be designated and maintained for the benefit of borrowers. Moneys maintained in the trust account shall be exempt from execution, attachment, or garnishment. A mortgage broker shall not in any way encumber the corpus of the trust account or commingle any other operating funds with trust account funds. Withdrawals from the trust account shall be only for the payment of bona fide services rendered by a third-party provider or for refunds to borrowers. (2) The director shall make rules which: (a) Direct mortgage brokers how to handle checks and other instruments that are received by the broker and that combine trust funds with other funds; and (b) permit transfer of trust funds out of the trust account for payment of other costs only when necessary and only with the prior express written permission of the borrower. (3) Any interest earned on the trust account shall be refunded or credited to the borrowers at closing. (4) Trust accounts that are operated in a manner consistent with this section and any rules adopted by the director, are not considered gross receipts taxable under chapter 82.04 RCW. (5) A person violating this section is guilty of a class C felony punishable according to chapter 9A.20 RCW.

## Nearby sections

- [RCW 19.146.005 RCW 19.146.005: Findings and declaration.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S005.md)
- [RCW 19.146.010 RCW 19.146.010: Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S010.md)
- [RCW 19.146.020 RCW 19.146.020: Exemptions from chapter.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S020.md)
- [RCW 19.146.030 RCW 19.146.030: Written disclosure of fees and costs—Rules—Contents—Lock-in agreement terms—Excess fees limited.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S030.md)
- [RCW 19.146.040 RCW 19.146.040: Written contract required—Contract entered by loan originator binding on mortgage broker—Written loan broker agreement required.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S040.md)
- [RCW 19.146.050 RCW 19.146.050: Moneys for third-party provider services deemed in trust—Deposit of moneys in trust account—Use of trust account—Rules—Tax treatment.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S050.md)
- [RCW 19.146.060 RCW 19.146.060: Accounting requirements.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S060.md)
- [RCW 19.146.070 RCW 19.146.070: Fee, commission, or compensation—When permitted.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S070.md)
- [RCW 19.146.080 RCW 19.146.080: Borrowers unable to obtain loans—Mortgage broker to provide copies of certain documents—Conditions—Exceptions.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S080.md)
- [RCW 19.146.085 RCW 19.146.085: Duties—Generally.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S085.md)
- [RCW 19.146.095 RCW 19.146.095: Fiduciary duties.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S095.md)
- [RCW 19.146.100 RCW 19.146.100: Violations of chapter—Application of consumer protection act.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S100.md)
- [RCW 19.146.103 RCW 19.146.103: Financial interest in a mortgage broker—Prohibited practices.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S103.md)
- [RCW 19.146.110 RCW 19.146.110: Criminal penalty.](https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S110.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_WA_T19_C146_S050. Check the current official text before relying on it. Not legal advice.