WA SB5938

An $80 foreclosure prevention fee is assessed on each residential mortgage loan at closing for properties located in Washington State, payable into the foreclosure fairness account.

Reverse mortgage loans for borrowers age 60 or older and chattel loans for dwellings secured as personal property are exempt from the fee.

For properties financed through state homeownership programs (Department of Commerce, Covenant Homeownership Program, or Housing Finance Commission programs), the fee may only be collected on the first lien mortgage.

The Department of Commerce must provide borrowers notice of the fee and its purpose at or before closing, including toll-free foreclosure hotline numbers.

The Department of Commerce must study the feasibility of using a portion of fee collections to establish a state homeowner assistance fund for homeowners who have exhausted foreclosure prevention options, with a report due by October 1, 2026.