The bill amends several sections of the Washington State housing finance law, specifically RCW 43.180, to clarify the role of the housing finance commission and its limitations regarding residential mortgage lending. A new section is added to emphasize that the commission is not intended to act as a retail mortgage lender and is not authorized to compete with private financial institutions in originating residential mortgage loans for individual homebuyers. The commission's authority is focused on streamlining financing for multifamily and non-owner-occupied housing while preserving the role of licensed mortgage lenders. Additionally, the bill modifies the language regarding the commission's purpose, emphasizing the need for affordable housing and the importance of using Washington state forest products in construction.

The bill also includes various amendments to existing sections, such as changing the definition of individuals with disabilities and clarifying the commission's powers, including the prohibition on originating residential mortgage loans directly to individuals for owner-occupied housing, except for specific down payment assistance programs. Furthermore, it repeals several outdated sections related to housing finance programs, streamlining the commission's operations and ensuring compliance with current housing finance objectives. Overall, the bill aims to enhance the effectiveness of the housing finance commission in addressing the state's affordable housing crisis while maintaining a clear boundary between its functions and those of private lenders.

Statutes affected:
Original bill: 43.180.010, 43.180.050, 43.180.080, 43.180.090, 43.180.150
Substitute bill: 43.180.010, 43.180.050, 43.180.080, 43.180.090, 43.180.150