Washington State’s One-Page Mortgage Disclosure Rescinded as of June 7

Washington State’s Department of Financial Institutions (DFI) Division of Credit Unions released a bulletin, B-12-02, on Tuesday to let credit unions know about a new change in Washington law. Substitute House Bill 2255 will take effect June 7, and it states that disclosures that comply with the Real Estate Settlement Procedures Act (RESPA) are deemed to be compliant with the disclosure required under state law RCW 19.144.020.

Specifically, the new law provides that the good faith estimate can act as the one-page disclosure summary required by Washington law. When the one-page disclosure was originally proposed in the Washington Legislature, many industry groups reminded legislators of the disclosure requirements in Federal law and regulations (such as RESPA). At that time, RESPA disclosures were not deemed sufficiently informative and user-friendly.

With the advent of the new good faith estimate form, Washington’s Legislature is more confident that members will be able to understand their loans and repayment obligations. Chalk this one up in the win column for credit unions working to ease the regulatory burden!

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Business Solutions, Compliance, Industry Insight, Marketing & Communications.