NWCUA Backed Foreclosure Fairness Bill Passes in Washington
Governor Inslee signed HB/2057 into law, creating essential protections for consumers facing foreclosure.
Your Association and a delegation of stakeholders celebrated an eight-year effort to pass the comprehensive Foreclosure Fairness Act (FFA) during a bill signing ceremony with Washington Governor Jay Inslee March 28.
The law will create new protections for low-income consumers, senior homeowners, and communities facing foreclosure. Rep. Tina Orwall (D-Des Moines) sponsored the legislation.
Of interest to credit unions, HB 2057:
- Increases the filing fee for every recorded notice of trustee’s sale to $325, which is used to fund the FFA. The law maintains the current exemptions from the fee and annual filing of notice of exemption with the Department of Commerce.
- Includes successor in interest provisions. If the borrower is known to be deceased, foreclosure notices need to be sent to any spouse, child, or parent of the borrower, if known by the financial institution. Additional provisions for working with a confirmed successor in interest during the foreclosure process are outlined.
- Creates a process in which a city or county may declare a property in foreclosure as abandoned. This would allow the credit union to go in and maintain the property during the foreclosure process. This will help reduce issues such as squatters, or other damage to the property before the credit union is able to complete the foreclosure process and gain rights to the property.
Editor’s note: Questions about the Foreclosure Fairness Act, or thoughts on the 2018-2019 policy agenda? Contact Paula Sardinas, Vice President, Legislative Affairs for Washington. email@example.com