WashingtonWashington home mortgage closings carry an $80 foreclosure fee
Washington closing agents collect an $80 fee on covered home mortgages, with exemptions for certain loans and borrowers and a first-lien limit for some program-backed purchases.
What it does
Closing agents collect an $80 fee on covered Washington home mortgages. Exemptions cover certain older borrowers and homes bought with personal-property loans; some program-backed purchases pay the fee only on the first mortgage lien.
Borrowers must receive notice of the fee and its purpose, with a toll-free number for the statewide foreclosure hotline. The fee may be left out of the loan’s finance charge calculation.
The Department of Commerce may set rules for collecting and managing the fee, and make agreements to handle payments efficiently.
Argument forThe fee could help fund foreclosure prevention, while borrowers get an explanation of the fee and a toll-free hotline number.
Argument againstBorrowers could face higher closing costs when they cannot or do not finance the $80 fee into their loan.
More detail
Closing agents collect an $80 foreclosure prevention fee for each covered residential mortgage loan. The fee applies to residential mortgage loans on property in Washington, whether made inside or outside the state. It does not apply to reverse mortgages for people age 60 or older, or to certain loans and retail contracts for dwellings secured as personal property. For purchases of up to four homes partly financed through specified state homeownership programs, the fee applies only to the first mortgage lien. The fee may be included in the loan and paid from its proceeds. The fee is due when the loan closes.
Closing agents disclose the fee as state and federal law requires and give borrowers a notice explaining its purpose. These requirements apply when an agent assesses the foreclosure prevention fee. The fee may be left out of the loan's finance charge calculation. The Department of Commerce must create a notice form that agents may use. The form must include toll-free numbers for the statewide foreclosure hotline. The agent must give the notice at or before assessing the fee.
The Department of Commerce may set policies, make payment agreements, and adopt rules to administer the fee. The authority covers putting the fee into effect, collecting it, sending payments, and managing it.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 23Effective date 6/11/2026.Latest
- Mar 23Chapter 156, 2026 Laws.Major
- Mar 23Governor Bob Ferguson signed.Became Law
- Mar 12Delivered to Governor.To Governor
- Mar 11Speaker signed.Major
- Mar 10President signed.Passed House
- Mar 9Passed final passage; yeas, 48; nays, 1; absent, 0; excused, 0.Passed Senate
- Vote recorded Final Passage as Amended by the House (#25). Result: pass.Upper
- Mar 9Senate concurred in House amendments.
- Mar 3Third reading, passed; yeas, 59; nays, 35; absent, 0; excused, 4.Minor
- Vote recorded Final Passage as Amended by the House (#14). Result: pass.Lower
- Mar 3Rules suspended. Placed on Third Reading.Minor
- Mar 3Committee amendment(s) adopted with no other amendments.
- Mar 2Rules Committee relieved of further consideration. Placed on second reading.Minor
- Feb 25Referred to Rules 2 Review.Minor
- Feb 23Minority; without recommendation.Minor
- Feb 23HOUS - Majority; do pass with amendment(s).Minor
- Feb 23Executive action taken in the House Committee on Housing at 1:30 PM.
- Feb 19Public hearing in the House Committee on Housing at 8:30 AM.
- Feb 6First reading, referred to Housing.Minor
- Feb 4Third reading, passed; yeas, 49; nays, 0; absent, 0; excused, 0.Minor
- Vote recorded 3rd Reading & Final Passage (#17). Result: pass.Upper
- Feb 4Rules suspended. Placed on Third Reading.Minor
- Feb 41st substitute bill substituted (HSG 26).Major
- Jan 28Placed on second reading consent calendar.Minor
- Jan 19Passed to Rules Committee for second reading.
- Jan 16HSG - Majority; 1st substitute bill be substituted, do pass.Major
- Jan 16Executive action taken in the Senate Committee on Housing at 10:30 AM.
- Jan 14Public hearing in the Senate Committee on Housing at 10:30 AM.
- Jan 12First reading, referred to Housing.Minor
- 2025
- Dec 23Prefiled for introduction.Introduced
HousingConsumer Protection