Notice of Committee Passage for Senate Bill 5685 - 10 Year Analysis Complete

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SB 5686, titled AN ACT Relating to expanding and funding the foreclosure mediation program, has been passed by the Senate Committee on Housing. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal Year		$80 Foreclosure Prevention Fee
2026		$7,120,000
2027		$7,120,000
2028		$7,120,000
2029		$7,120,000
2030		$7,120,000
2031		$7,120,000
2032		$7,120,000
2033		$7,120,000
2034		$7,120,000
2035		$7,120,000
Total:		$71,200,000

Department of Commerce:

Section 8: Adds a new section to chapter 31.04 RCW establishing a new program fee to support the Foreclosure Fairness Program. The bill sets the fee at a rate of $80 paid by the borrower for each residential mortgage loan origination. We are assuming a mid-range loan origination rate of 89,000 per year. The escrow company processing the loan closing is responsible for collecting the program fee and remitting it into the Foreclosure Fairness Account. This program fee is an additional source of revenue for the Foreclosure Fairness Program on top of the Notice of Default paid by financial institutions currently outlined in RCW 61.24.190. This program fee exempts the collection of the program fee on reverse mortgage loan originations for seniors over the age of 61.  

Estimated Revenue = $80 per loan origination x estimated 89,000 originations/year = $7,120,000/year

*Exact revenue is indeterminate because many factors affect the demand for loans.

Ten-year projection prepared in consultation with the following agencies:

Department of Commerce

The following legislators voted do pass:

Senator Tina Orwall
Democrat
(360) 786-7664
tina.orwall@leg.wa.gov

Senator Jessica Bateman
Democrat
(360) 786-7642
jessica.bateman@leg.wa.gov

Senator Yasmin Trudeau
Democrat
(360) 786-7652
yasmin.trudeau@leg.wa.gov

Senator Jesse Salomon
Democrat
(360) 786-7662
jesse.salomon@leg.wa.gov

Senator Emily Alvarado
Democrat
(360) 786-7667
Emily.Alvarado@leg.wa.gov


The following legislators voted to refer the bill without recommendation:

Senator Keith Goehner
Republican
(360) 786-7622
keith.goehner@leg.wa.gov

Senator Chris Gildon
Republican
(360) 786-7648
chris.gildon@leg.wa.gov



Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp