April 14, 2018

Washington Recent Regulatory Updates

Bankers Advisory--Ryan Peters

Washington Enacts Law Relating to Services and Processes Available When Residential Real Property is Abandoned or in Foreclosure

Washington has enacted House Bill 2057, an “Act relating to the services and processes available when residential real property is abandoned or in foreclosure” (the “Act”). The Act is effective as of June 7, 2018.

As noted in the Substitute Bill Digest, the Act “modifies provisions relating to nonjudicial foreclosures, required beneficiary remittances, notice of preforeclosure for residential reverse mortgages, and a process for when residential real property is determined by a local government to be abandoned, in mid-foreclosure, and a nuisance.”

For the full text of Washington House Bill 2057, please refer to:

http://lawfilesext.leg.wa.gov/biennium/2017-18/Pdf/Bills/House%20Passed%20Legislature/2057-S.PL.pdf

 

Washington Establishes Student Loan Bill of Rights

Washington has passed an “Act Relating to establishing a student loan bill of rights” (the “Act”). The Act requires certain “clear and conspicuous” disclosures be made by licensees for consumer loans that are a refinance of a federal student education loan. The Act is effective as of June 7, 2018.

Section 14 of the Act states in part:

[…] (4) In addition for all consumer loans made by the licensee that are secured by a lien on real property, the licensee must comply with RCW 19.144.020. (5) In addition for all consumer loans made by a licensee that are a refinance of a federal student education loan, the licensee must provide to the borrower a clear and conspicuous disclosure that some repayment and forgiveness options available under federal student education loan programs, including without limitation income driven repayment plans, economic hardship deferments, or public service loan forgiveness, will no longer be available to the borrower if he or she chooses to refinance federal student education loans with one or more consumer loans. (6) The director’s obligations or duties under chapter . . ., Laws of 2018 (this act) are subject to section 21 of this act.

Section 21 of the Act states that, “The department of financial institutions and the director or director’s designees do not have any enforcement, examination, or reporting obligations or duties under this act until January 1, 2019, or until the final adoption of rules pursuant to this act, whichever is sooner.”

For the full text of Washington Senate Bill 6029, please refer to:

http://lawfilesext.leg.wa.gov/biennium/2017-18/Pdf/Bills/Session%20Laws/Senate/6029-S2.SL.pdf


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