Bill > HB2268

This bill, concerning residential mortgage loan escrow accounts, establishes new requirements for mortgage loan servicers in Washington State. A "mortgage loan servicer" is defined as an entity responsible for collecting payments on residential mortgage loans, including principal, interest, and escrow amounts, and may also be involved in modifying loan terms. A "residential mortgage loan" is a loan primarily for personal, family, or household use secured by a mortgage on a dwelling or residential real estate. Beginning January 1, 2027, any mortgage loan servicer collecting funds for taxes and insurance in an escrow account for residential mortgage loans secured by property with one to four units in Washington must pay borrowers at least two percent simple interest per annum on these funds. The bill also prohibits servicers from charging fees that would reduce the effective interest rate below this minimum, and these provisions apply only to residential mortgage loans originated on or after January 1, 2027.

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https://app.leg.wa.gov/billsummary?BillNumber=2268&Year=2025&Initiative=false