Bill > SB5938

This bill modifies the existing foreclosure prevention fee, which is a $80 charge assessed on most residential mortgage loans to fund the foreclosure fairness account. The bill exempts reverse mortgage loans made to individuals aged 60 or older and certain chattel loans or retail installment contracts for dwellings secured as personal property from this fee. Additionally, for borrowers purchasing residential property of up to four units who are utilizing specific state-administered homeownership programs, the fee will only apply to the first lien mortgage loan. The bill also mandates that borrowers receive a notice about the fee and its purpose at closing, and it clarifies that the fee can be excluded from the calculation of the finance charge. Furthermore, the bill requires the department of commerce to study the feasibility of using a portion of these fee collections to create a state homeowner assistance fund for direct financial aid to homeowners who have exhausted other foreclosure prevention options, with a report and proposed legislation due by July 1, 2027, and this study provision expires on August 1, 2028.

Housing and Urban Affairs

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