Washington SB5938 establishes a foreclosure prevention fee on residential mortgage loans to fund a homeowner assistance fund.

Washington SB5938 mandates a foreclosure prevention fee of $80 on each residential mortgage loan, except for reverse mortgages for seniors and certain chattel loans. The fee is collected at closing and can be paid from the loan proceeds or a borrower's cash contribution. The Department of Commerce, in consultation with the Washington State Housing Finance Commission, will evaluate using a portion of the fee to establish a state homeowner assistance fund for those who have exhausted all options under the foreclosure fairness act.

Washington SB5938 establishes a foreclosure prevention fee on residential mortgage loans to fund a homeowner assistance fund.

Washington SB5938 mandates a foreclosure prevention fee of $80 on each residential mortgage loan, except for reverse mortgages for seniors and certain chattel loans. The fee is collected at closing and can be paid from the loan proceeds or a borrower's cash contribution. The Department of Commerce, in consultation with the Washington State Housing Finance Commission, will evaluate using a portion of the fee to establish a state homeowner assistance fund for those who have exhausted all options under the foreclosure fairness act.