The bill amends RCW 61.24.157 to establish a foreclosure prevention fee of $80 for each residential mortgage loan related to property in Washington. This fee is due at the time of closing and can be financed through the loan proceeds. Notably, the bill removes the previous exemption for reverse mortgage loans issued to seniors over the age of 61 and instead introduces new exemptions for reverse mortgage loans made to individuals aged 60 and older, as well as for chattel loans or retail installment contracts for purchasing dwellings secured as personal property. Additionally, if a borrower is financing a purchase transaction through specific state-administered programs, the fee will only be collected on the first lien residential mortgage loan.

The bill also mandates that the foreclosure prevention fee must be disclosed in accordance with federal and state law, although it may be excluded from the finance charge calculation. At the time the fee is assessed, the escrow agent or closing agent is required to provide the borrower with a notice detailing the fee and its purpose, which must include contact information for the statewide foreclosure hotline. Furthermore, the bill grants the department the authority to create policies and procedures for the fee's implementation and management, as well as the ability to adopt necessary rules for enforcement.

Statutes affected:
Original bill: 61.24.157
Substitute bill: 61.24.157
Bill as passed Legislature: 61.24.157
Session law: 61.24.157