The bill amends the Washington Consumer Loan Act to include regulations for home equity sharing agreements. Specifically, it introduces a new definition for "home equity sharing agreement," which is described as an obligation where a borrower receives an advance sum of money or other value in exchange for an interest or future share of equity in their primary dwelling. Additionally, the definition of "residential mortgage loan" is expanded to explicitly include home equity sharing agreements, thereby subjecting them to the same regulatory framework as other residential mortgage loans.

Furthermore, the bill updates existing provisions regarding disclosures that licensees must provide to borrowers for loans secured by real property. It mandates that licensees must give borrowers a written disclosure of all fees and costs associated with obtaining a loan within three business days of receiving a loan application. The bill also emphasizes compliance with federal laws, such as the Truth in Lending Act, and requires licensees to provide estimates of the annual percentage rate and information about prepayment penalties. These changes aim to enhance transparency and consumer protection in the lending process, particularly concerning home equity sharing agreements.

Statutes affected:
Original Bill: 31.04.015, 31.04.102
Substitute Bill: 31.04.015, 31.04.027, 31.04.102, 31.04.105
Engrossed Substitute: 31.04.015, 31.04.102