10 Year Analysis Complete for Engrossed Second Substitute Senate Bill 5686.PL - UPDATE

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UPDATE: The 10 year analysis for E2SSB 5686.PL, titled AN ACT Relating to expanding and funding the foreclosure mediation program, has been completed. 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		$0
2035		$0
Total:		$56,960,000

Department of Commerce:

Section 8 amends chapter 61.24 RCW to establish the new program fee, the Foreclosure Prevention 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. The Department of Commerce (Department) assumes 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

This engrossed bill is proposed by the Senate.

The second substitute bill was proposed by:



The original bill sponsors and contact information are:

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

Senator Noel Frame
Democrat
(360) 786-7670
noel.frame@leg.wa.gov

Senator Bob Hasegawa
Democrat
(360) 786-7616
bob.hasegawa@leg.wa.gov

Senator T'wina Nobles
Democrat
(360) 786-7654
T'wina.Nobles@leg.wa.gov




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

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