Notice of Committee Passage for Engrossed Second Substitute Senate Bill 5686 - 10 Year Analysis Complete

You are receiving this email as a subscriber to the Initiative 960 email list. RCW 43.135.031 (I-960) requires that notices be sent each time a bill that raises taxes or fees is: introduced in either house; scheduled for a public hearing; approved by any legislative committee; or passed by either house of the Legislature.

Please note: This email message was sent from a notification-only address. Please do not reply to this message.

E2SSB 5686, titled AN ACT Relating to expanding and funding the foreclosure mediation program, has been passed by the House 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 Amends this chapter to establish the new program fee, the Foreclosure Prevention Fee, to support the Foreclosure Fairness Program under RCW Chapter 61.24. The bill sets the fee at a rate of $80 paid by the borrower for each residential mortgage loan origination. We are estimating 89,000 loan originations per year. 

The escrow, settlement or closing agent 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:

Representative Debra Entenman
Democrat
(360) 786-7918
debra.entenman@leg.wa.gov

Representative Brianna Thomas
Democrat
(360) 786-7978
THOMAS_BR@leg.wa.gov

Representative Mia Gregerson
Democrat
(360) 786-7868
mia.gregerson@leg.wa.gov

Representative Strom Peterson
Democrat
(360) 786-7950
strom.peterson@leg.wa.gov

Representative Adison Richards
Democrat
(360) 786-7964
RICHARDS_AD@leg.wa.gov

Representative Debra Lekanoff
Democrat
(360) 786-7800
debra.lekanoff@leg.wa.gov

Representative Julia Reed
Democrat
(360) 786-7814
Julia.Reed@leg.wa.gov

Representative Joe Timmons
Democrat
(360) 786-7854
Joe.Timmons@leg.wa.gov

Representative Natasha Hill
Democrat
(360) 786-7888
Natasha.Hill@leg.wa.gov

Representative Janice Zahn
Democrat
(360) 786-7894
Janice.Zahn@leg.wa.gov


The following legislators voted to refer the bill without recommendation:

Representative Andrew Barkis
Republican
(360) 786-7824
andrew.barkis@leg.wa.gov


The following legislators voted do not pass:

Representative Jeremie Dufault
Republican
(360) 786-7874
DUFAULT_JE@leg.wa.gov

Representative Cyndy Jacobsen
Republican
(360) 786-7968
Cyndy.Jacobsen@leg.wa.gov

Representative April Connors
Republican
(360) 786-7882
April.Connors@leg.wa.gov

Representative Sam Low
Republican
(360) 786-7967
Sam.Low@leg.wa.gov

Representative Andrew Engell
Republican
(360) 786-7908
Andrew.Engell@leg.wa.gov

Representative Deb Manjarrez
Republican
(360) 786-7856
Deb.Manjarrez@leg.wa.gov



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

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