WA Real Estate Lenders Must Complete Foreclosure Certificate by Saturday
May 12, 2011
May 12, 2011
Credit unions doing real estate lending in Washington State will have to complete a foreclosure certification by this Saturday, May 14, to avoid paying fees, following an interpretation by the Washington Department of Commerce.
The decision follows a review of the Second Substitute House Bill 1362 (The Foreclosure Fairness Act).
This new law applies to properties located in Washington State, regardless of the financial institution’s charter type. Furthermore, if it is federally insured and has lent on properties located in Washington State, this new law will apply to collection activities on said properties.
While the Foreclosure Fairness Act as a whole becomes effective in late July, certain sections of the new law became effective immediately upon signing (April 14, 2011) via an emergency clause. Included in the emergency provisions is section 12, which provides for a fee of $250 per notice of default issued between January 14, 2011, and April 13, 2011, (for owner-occupied residential real properties). The total fee is due May 14, 2011.
Credit unions who issued fewer than 250 notices of default in 2010 are exempt from paying this fee. In order to qualify for this exemption, the Department of Commerce is requiring credit unions to certify that they meet the exemption by the due date of May 14.
The certification must be RECEIVED by Saturday, May 14, 2011.
The Association is recommending that credit unions fax or scan and email their certifications to be certain of timely receipt. A hard copy should be mailed to the Department, postmarked no later than Saturday. Note that the Department of Commerce will be closed Friday, May 13 as well as Saturday, May 14.
To certify, you must send, on credit union letterhead, the following statement:
I hereby certify under penalty of perjury that ABC Credit Union issued fewer than 250 notices of default on owner-occupied residential real properties between the dates of January 1, 2010, and December 31, 2010, inclusive.
ABC Credit Union
The certification should be directed to:
Valerie Grigg Devis, Foreclosure Mediation Program Manager
Washington State Department of Commerce
CSHD/Public Safety Unit
P.O. Box 42525
Olympia, WA 98504-2525
If you have questions about the Foreclosure Fairness Act, please contact the Compliance Hotline: 800.546.4465, email@example.com.
Posted in Compliance News.