Washington state House committee held preliminary hearing last week, with another scheduled this week, on a "Foreclosure Fairness Act" bill (HB 1362) .
Page to track bill progress is HERE, text of bill is HERE. Bill requires lenders to conduct a good faith review:
A good faith review of the borrower's financial situation means the beneficiary or authorized agent:
(a) Evaluates the borrower's eligibility for all loan modification programs established by the federal government or mortgage industry;
and
(b) Participates in the foreclosure mediation program established under this section, if the borrower elects mediation.
(3) Failure of the beneficiary or authorized agent to conduct a good faith review of the borrower's financial situation constitutes a defense to foreclosure.
Costs May be an Issue?
Fiscal note HERE indicates some General Fund costs, and with likely industry opposition, it is not clear what prospects of passage are for this bill.
Appears to me from reading portion of bill that new $30 charge at time of recording notice of owner occupied trustee sale will pay for some program costs. Costs for mediator will be split 50/50 between lender and borrower, with cap of $400 total for mediation session of 3 hours or less; higher fees for longer session to be approved by state agency.
