Washington § 61.24.157 - Residential mortgage loans — Foreclosure prevention fee — Notice.

(1) For each residential mortgage loan, as defined in RCW 31.04.015(24), originated within or outside of the state of Washington and related to property located within the state of Washington, except as set forth in subsection (2) of this section, a foreclosure prevention fee of $80 shall be assessed and due and payable at the time of closing by the escrow agent or other settlement or closing agent processing the loan closing into the foreclosure fairness account created in RCW 61.24.172. This foreclosure prevention fee may be financed in the loan and paid from the loan proceeds at the time of closing.

(2)(a) The following are exempt from the requirements of subsection (1) of this section:

(i) Any reverse mortgage loan made to a person 60 years of age or older; and

(ii) Chattel loans or retail installment contracts to purchase a dwelling where the dwelling is secured as personal property.

(b) If a borrower is purchasing residential real property of up to four units and the purchase transaction is financed in any part through any program administered by the department under chapter 43.185A RCW, the covenant homeownership program established under chapter 43.181 RCW, or any homeownership program administered by the Washington state housing finance commission under chapter 43.180 RCW, then the foreclosure prevention fee may only be collected on the first lien residential mortgage loan.

(3) The foreclosure prevention fee required by subsection (1) of this section must be disclosed in accordance with federal and state law. However, the foreclosure prevention fee may be excluded from the finance charge calculation.

(4) At or before the time that the foreclosure prevention fee is assessed under subsection (1) of this section, the escrow agent or other settlement or closing agent must provide the borrower with a notice of the foreclosure prevention fee and its purpose. The department must create a notice form that an escrow agent or other settlement or closing agent may use to satisfy this notice requirement. The notice form must include the toll-free numbers for the statewide foreclosure hotline recommended by the housing finance commission.

(5) The department has the power and broad administrative discretion to administer and interpret this section and may:

(a) Make policies and procedures related to the implementation, collection, remittance, and management of the foreclosure prevention fee;

(b) Enter into individualized agreements governing the efficient remittance of the foreclosure prevention fee; and

(c) Adopt rules as necessary to interpret, implement, and enforce this section.