Bill > SB5938

This bill modifies the existing law regarding a foreclosure prevention fee, which is a $80 charge assessed on most residential mortgage loans related to property in Washington state, due at closing and payable into the foreclosure fairness account. The bill exempts reverse mortgage loans made to individuals 60 years or older, as well as chattel loans or retail installment contracts used to purchase a dwelling that is secured as personal property. For borrowers purchasing residential property of up to four units financed through certain state-administered homeownership programs, the fee will only be collected on the first lien mortgage loan. The bill also clarifies that this fee must be disclosed to the borrower, though it can be excluded from the calculation of the finance charge, and requires escrow agents to provide borrowers with a notice about the fee and its purpose, including information about the statewide foreclosure hotline. The department is granted broad administrative discretion to manage the fee's implementation, collection, and remittance, and can adopt necessary rules.

Housing and Urban Affairs

https://app.leg.wa.gov/billsummary?BillNumber=5938&Year=2025&Initiative=false