Wa. State Foreclosure Mediation and Foreclosure Fairness Fund Programs Bill Is On to Governor for Signature.

Received an update from one of the blog subscribers advising  that Washington State Foreclosure Mediation and Foreclosure Fairness fund bill [HB 1362] has now passed both the House and Senate and is on way to Governor for signature. [My earlier blog post, with links to bill and related materials is HERE].

In re implementation dates, note says: 

Unless [governor] vetoes the emergency clause section, parts of the bill will become effective immediately.  Those parts relate to collecting the fees and getting the Department of Commerce who will be administering the program up to speed. The substantive portions of the law dealing with mediation and other substantive rights, as well as the disbursement of funds to housing counselors, the AG, and OCLA, will be effective 90 days from the Governor’s signature.  Consequently, it could become completely effective in early July.

Originally created and posted on the Oregon Housing Blog. 

Washington State Foreclosure Mediation and Foreclosure Fairness Fund Programs Moving Toward Final Legislative Action.

TheNewstribune.com story is HERE.

A " Second Substitute Senate Bill Report" from the Washington State legislature on the underlying bill is HERE. I recommend reading to fully understand the mediation AND "Foreclosure Fairness fund" provisions of this legislation.

The Washington state legislative page for all actions related to HB 1362 is HERE.

My prior January 2011 blog post about an earlier version of the bill is HERE.

Originally created and posted on the Oregon Housing Blog.

Washington State House Considering Bill Requiring Mediation (if Consumer Wants) in Foreclosure Cases.

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.

Originally created and posted on the Oregon Housing Blog.