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 nonowner-occupied housing while preserving the role of licensed mortgage lenders in the market. Additionally, the bill modifies the language regarding the commission's purpose, including a shift from "disabled persons" to "individuals with disabilities," and establishes that the commission may not originate or make residential mortgage loans directly to individuals for owner-occupied housing, except for specific down payment assistance programs.

Furthermore, the bill repeals several outdated sections of the law that pertain to housing finance programs and their implementation. It also introduces new provisions regarding the commission's powers, such as establishing eligibility standards for assistance, conducting audits, and ensuring compliance with housing finance objectives. The amendments aim to enhance the commission's ability to provide affordable housing while ensuring that it does not overstep its intended role in the housing finance market. Overall, the bill seeks to improve the effectiveness of the housing finance commission in addressing the state's housing needs 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