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WashingtonSB 59382025-2026 Regular SessionSenateWALLET

Concerning the foreclosure prevention fee.

Sponsored By: Tina Orwall (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Assisted homebuyers avoid extra mortgage fees

Beginning June 11, 2026, qualifying assisted home purchases have a limit on the $80 foreclosure prevention fee. The purchase must be for Washington residential property with four or fewer units. Any part of the purchase must use financing from a qualifying state housing program. These include Department of Commerce programs under chapter 43.185A, the covenant homeownership program, and Housing Finance Commission homeownership programs. Closing agents can collect the fee only on the first-lien mortgage—the loan with first claim on the property.

Washington mortgage fee includes borrower exemptions

Beginning June 11, 2026, the law provides for an optional $80 foreclosure prevention fee on residential mortgages for Washington property. This applies even when the loan is made outside Washington. The fee is due at closing and can be paid from loan proceeds. Reverse mortgages for borrowers age 60 or older are exempt; the prior exemption covered borrowers over age 61. Chattel loans and retail installment contracts to buy dwellings secured as personal property are also exempt. Closing agents must disclose the fee and give borrowers notice of its purpose at or before assessment. The Department of Commerce must create a notice form with statewide foreclosure hotline toll-free numbers. Closing agents send collected fees to the foreclosure fairness account, and the department can set collection rules and remittance agreements. The fee may be excluded from the finance charge calculation.

Sponsors & Cosponsors

Sponsor

  • Tina Orwall

    Democratic • Senate

Cosponsors

  • Derek Stanford

    Democratic • Senate

  • T'wina Nobles

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 156 • No: 36

Senate vote • 3/9/2026

Final Passage as Amended by the House

Yes: 48 • No: 1

House vote • 3/3/2026

Final Passage as Amended by the House

Yes: 59 • No: 35 • Other: 4

Senate vote • 2/4/2026

3rd Reading & Final Passage

Yes: 49 • No: 0

Actions Timeline

  1. Effective date 6/11/2026.

    3/23/2026Senate

  2. Chapter 156, 2026 Laws.

    3/23/2026Senate

  3. Governor signed.

    3/23/2026legislature

  4. Delivered to Governor.

    3/12/2026legislature

  5. Speaker signed.

    3/11/2026legislature

  6. President signed.

    3/10/2026legislature

  7. Passed final passage; yeas, 48; nays, 1; absent, 0; excused, 0.

    3/9/2026Senate

  8. Senate concurred in House amendments.

    3/9/2026House

  9. Third reading, passed; yeas, 59; nays, 35; absent, 0; excused, 4.

    3/3/2026Senate

  10. Rules suspended. Placed on Third Reading.

    3/3/2026Senate

  11. Committee amendment(s) adopted with no other amendments.

    3/3/2026Senate

  12. Rules Committee relieved of further consideration. Placed on second reading.

    3/2/2026Senate

  13. Referred to Rules 2 Review.

    2/25/2026Senate

  14. Minority; without recommendation.

    2/23/2026Senate

  15. HOUS - Majority; do pass with amendment(s).

    2/23/2026Senate

  16. HOUS - Executive action taken by committee.

    2/23/2026Senate

  17. First reading, referred to Housing.

    2/6/2026Senate

  18. Third reading, passed; yeas, 49; nays, 0; absent, 0; excused, 0.

    2/4/2026Senate

  19. Rules suspended. Placed on Third Reading.

    2/4/2026Senate

  20. 1st substitute bill substituted.

    2/4/2026Senate

  21. Placed on second reading consent calendar.

    1/28/2026Senate

  22. Passed to Rules Committee for second reading.

    1/19/2026Senate

  23. HSG - Majority; 1st substitute bill be substituted, do pass.

    1/16/2026Senate

  24. First reading, referred to Housing.

    1/12/2026Senate

  25. Prefiled for introduction.

    12/23/2025Senate

Bill Text

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