RCW 61.24.160
Housing counselors
—
Good faith duty to attempt resolution
—
Resolution described
—
Mediation
—
Liability for civil damages
—
Annual report.
(1)(a) A housing counselor who is contacted by a borrower under RCW 61.24.031
has a duty to act in good faith to attempt to reach a resolution with the beneficiary on behalf of the borrower within the 90 days provided from the date the beneficiary initiates contact with the borrower and the date the notice of default is issued. A resolution may include, but is not limited to, modification of the loan, an agreement to conduct a short sale, a deed in lieu of foreclosure transaction, or some other workout plan.
(b) Nothing in RCW 61.24.031
or this section precludes a meeting or negotiations between the housing counselor, borrower, and beneficiary at any time, including after the issuance of the notice of default.
(c) A borrower who is contacted under RCW 61.24.031
may seek the assistance of a housing counselor or attorney at any time.
(2) Housing counselors have a duty to act in good faith to assist borrowers by:
(a) Preparing the borrower for meetings with the beneficiary;
(b) Advising the borrower about what documents the borrower must have to seek a loan modification or other resolution;
(c) Informing the borrower about the alternatives to foreclosure, including loan modifications or other possible resolutions; and
(d) Providing other guidance, advice, and education as the housing counselor considers necessary.
(3) A housing counselor or attorney assisting a borrower may refer the borrower to mediation, pursuant to RCW 61.24.163, if the housing counselor or attorney determines that mediation is appropriate based on the individual circumstances and the borrower has received a notice of default. The referral to mediation may be made any time after a notice of default has been issued but no later than 90 days prior to the date of sale listed in the notice of trustee's sale. If an amended notice of trustee's sale is recorded after the trustee sale has been stayed pursuant to RCW 61.24.130, the borrower may be referred to mediation no later than 25 days prior to the date of sale listed in the amended notice of trustee's sale.
(4) For borrowers who have received a letter under RCW 61.24.031
before June 7, 2012, a referral to mediation by a housing counselor or attorney does not preclude a trustee issuing a notice of default if the requirements of RCW 61.24.031
have been met.
(5) Housing counselors providing assistance to borrowers under RCW 61.24.031
are not liable for civil damages resulting from any acts or omissions in providing assistance, unless the acts or omissions constitute gross negligence or willful or wanton misconduct.
(6) Housing counselors shall provide information to the department to assist the department in its annual report to the legislature as required under *RCW 61.24.163
(18). The information provided to the department by the housing counselors should include outcomes of foreclosures and be similar to the information requested in the national foreclosure mortgage counseling client level foreclosure outcomes report form.
[
2023 c 206 s 4
;
2012 c 185 s 5
;
2011 c 58 s 6
.]
NOTES:
*Reviser's note:
RCW 61.24.163
was amended by 2025 c 393 s 3, changing subsection (18) to subsection (22), effective January 1, 2026.
Findings
—
Intent
—
Short title
—
2011 c 58:
See notes following RCW 61.24.005
.
RCW 61.24.163
Foreclosure mediation program
—
Timelines
—
Procedures
—
Duties and responsibilities of mediator, borrower, and beneficiary
—
Fees
—
Annual report.
(Effective until January 1, 2026.)
(1) The foreclosure mediation program established in this section applies only to borrowers who have been referred to mediation by a housing counselor or attorney. The referral to mediation may be made any time after a notice of default has been issued but no later than 90 days prior to the date of sale listed in the notice of trustee's sale. If an amended notice of trustee's sale is recorded after the trustee sale has been stayed pursuant to RCW 61.24.130, the borrower may be referred to mediation no later than 25 days prior to the date of sale listed in the amended notice of trustee's sale. If the borrower has failed to elect to mediate within the applicable time frame, the borrower and the beneficiary may, but are under no duty to, agree in writing to enter the foreclosure mediation program. The mediation program under this section is not governed by chapter
7.07
RCW and does not preclude mediation required by a court or other provision of law.
(2) A housing counselor or attorney referring a borrower to mediation shall send a notice to the borrower and the department, stating that mediation is appropriate.
(3) Within 10 days of receiving the notice, the department shall:
(a) Send a notice to the beneficiary, the borrower, the housing counselor or attorney who referred the borrower, and the trustee stating that the parties have been referred to mediation. The notice must include the statements and list of documents and information described in subsections (4) and (5) of this section and a statement explaining each party's responsibility to pay the mediator's fee; and
(b) Select a mediator and notify the parties of the selection.
(4) Within 23 days of the department's notice that the parties have been referred to mediation, the borrower shall transmit the documents required for mediation to the mediator and the beneficiary. The required documents include an initial homeowner financial information worksheet as required by the department. The worksheet must include, at a minimum, the following information:
(a) The borrower's current and future income;
(b) Debts and obligations;
(c) Assets;
(d) Expenses;
(e) Tax returns for the previous two years;
(f) Hardship information;
(g) Other applicable information commonly required by any applicable federal mortgage relief program.
(5) Within 20 days of the beneficiary's receipt of the borrower's documents, the beneficiary shall transmit the documents required for mediation to the mediator and the borrower. The required documents include:
(a) An accurate statement containing the balance of the loan within 30 days of the date on which the beneficiary's documents are due to the parties;
(b) Copies of the note and deed of trust;
(c) Proof that the entity claiming to be the beneficiary is the owner of any promissory note or obligation secured by the deed of trust. Sufficient proof may be a copy of the declaration described in RCW 61.24.030
(7)(a);
(d) The best estimate of any arrearage and an itemized statement of the arrearages;
(e) An itemized list of the best estimate of fees and charges outstanding;
(f) The payment history and schedule for the preceding twelve months, or since default, whichever is longer, including a breakdown of all fees and charges claimed;
(g) All borrower-related and mortgage-related input data used in any net present values analysis. If no net present values analysis is required by the applicable federal mortgage relief program, then the input data required under the federal deposit insurance corporation and published in the federal deposit insurance corporation loan modification program guide, or if that calculation becomes unavailable, substantially similar input data as determined by the department;
(h) An explanation regarding any denial for a loan modification, forbearance, or other alternative to foreclosure in sufficient detail for a reasonable person to understand why the decision was made;
(i) Appraisal or other broker price opinion most recently relied upon by the beneficiary not more than 90 days old at the time of the scheduled mediation; and
(j) The portion or excerpt of the pooling and servicing agreement or other investor restriction that prohibits the beneficiary from implementing a modification, if the beneficiary claims it cannot implement a modification due to limitations in a pooling and servicing agreement or other investor restriction, and documentation or a statement detailing the efforts of the beneficiary to obtain a waiver of the pooling and servicing agreement or other investor restriction provisions.
(6) Within 70 days of receiving the referral from the department, the mediator shall convene a mediation session in the county where the property is located, unless the parties agree on another location. The parties may agree to extend the time in which to schedule the mediation session. If the parties agree to extend the time, the beneficiary shall notify the trustee of the extension and the date the mediator is expected to issue the mediator's certification.
(7)(a) The mediator may schedule phone conferences, consultations with the parties individually, and other communications to ensure that the parties have all the necessary information and documents to engage in a productive mediation.
(b) The mediator must send written notice of the time, date, and location of the mediation session to the borrower, the beneficiary, and the department at least 30 days prior to the mediation session. At a minimum, the notice must contain:
(i) A statement that the borrower may be represented in the mediation session by an attorney or other advocate;
(ii) A statement that a person with authority to agree to a resolution, including a proposed settlement, loan modification, or dismissal or continuation of the foreclosure proceeding, must be present either in person or on the telephone or videoconference during the mediation session; and
(iii) A statement that the parties have a duty to mediate in good faith and that failure to mediate in good faith may impair the beneficiary's ability to foreclose on the property or the borrower's ability to modify the loan or take advantage of other alternatives to foreclosure.
(8)(a) The borrower, the beneficiary or authorized agent, and the mediator must meet in person for the mediation session. However, a person with authority to agree to a resolution on behalf of the beneficiary may be present over the telephone or videoconference during the mediation session.
(b) After the mediation session commences, the mediator may continue the mediation session once, and any further continuances must be with the consent of the parties.
(9) The participants in mediation must address the issues of foreclosure that may enable the borrower and the beneficiary to reach a resolution, including but not limited to reinstatement, modification of the loan, restructuring of the debt, or some other workout plan. To assist the parties in addressing issues of foreclosure, the mediator may require the participants to consider the following:
(a) The borrower's current and future economic circumstances, including the borrower's current and future income, debts, and obligations for the previous 60 days or greater time period as determined by the mediator;
(b) The net present value of receiving payments pursuant to a modified mortgage loan as compared to the anticipated net recovery following foreclosure;
(c) Any affordable loan modification calculation and net present value calculation when required under any federal mortgage relief program and any modification program related to loans insured by the federal housing administration, the veterans administration, and the rural housing service. If such a calculation is not provided or required, then the beneficiary must provide the net present value data inputs established by the federal deposit insurance corporation and published in the federal deposit insurance corporation loan modification program guide or other net present value data inputs as designated by the department. The mediator may run the calculation in order for a productive mediation to occur and to comply with the mediator certification requirement; and
(d) Any other loss mitigation guidelines to loans insured by the federal housing administration, the veterans administration, and the rural housing service, if applicable.
(10) A violation of the duty to mediate in good faith as required under this section may include:
(a) Failure to timely participate in mediation without good cause;
(b) Failure of the borrower or the beneficiary to provide the documentation required before mediation or pursuant to the mediator's instructions;
(c) Failure of a party to designate representatives with adequate authority to fully settle, compromise, or otherwise reach resolution with the borrower in mediation; and
(d) A request by a beneficiary that the borrower waive future claims he or she may have in connection with the deed of trust, as a condition of agreeing to a modification, except for rescission claims under the federal truth in lending act. Nothing in this section precludes a beneficiary from requesting that a borrower dismiss with prejudice any pending claims against the beneficiary, its agents, loan servicer, or trustee, arising from the underlying deed of trust, as a condition of modification.
(11) If the mediator reasonably believes a borrower will not attend a mediation session based on the borrower's conduct, such as the lack of response to the mediator's communications, the mediator may cancel a scheduled mediation session and send a written cancellation to the department and the trustee and send copies to the parties. The beneficiary may proceed with the foreclosure after receipt of the mediator's written confirmation of cancellation.
(12) Within seven business days after the conclusion of the mediation session, the mediator must send a written certification to the department and the trustee and send copies to the parties of:
(a) The date, time, and location of the mediation session;
(b) The names of all persons attending in person and by telephone or videoconference, at the mediation session;
(c) Whether a resolution was reached by the parties, including whether the default was cured by reinstatement, modification, or restructuring of the debt, or some other alternative to foreclosure was agreed upon by the parties;
(d) Whether the parties participated in the mediation in good faith; and
(e) If a written agreement was not reached, a description of any net present value test used, along with a copy of the inputs, including the result of any net present value test expressed in a dollar amount.
(13) If the parties are unable to reach an agreement, the beneficiary may proceed with the foreclosure after receipt of the mediator's written certification.
(14)(a) The mediator's certification that the beneficiary failed to act in good faith in mediation constitutes a defense to the nonjudicial foreclosure action that was the basis for initiating the mediation. In any action to enjoin the foreclosure, the beneficiary is entitled to rebut the allegation that it failed to act in good faith.
(b) The mediator's certification that the beneficiary failed to act in good faith during mediation does not constitute a defense to a judicial foreclosure or a future nonjudicial foreclosure action if a modification of the loan is agreed upon and the borrower subsequently defaults.
(c) If an affordable loan modification is not offered in the mediation or a written agreement was not reached and the mediator's certification shows that the net present value of the modified loan exceeds the anticipated net recovery at foreclosure, that showing in the certification constitutes a basis for the borrower to enjoin the foreclosure.
(15) The mediator's certification that the borrower failed to act in good faith in mediation authorizes the beneficiary to proceed with the foreclosure.
(16)(a) If a borrower has been referred to mediation before a notice of trustee sale has been recorded, a trustee may not record the notice of sale until the trustee receives the mediator's certification stating that the mediation has been completed. If the trustee does not receive the mediator's certification, the trustee may record the notice of sale after 10 days from the date the certification to the trustee was due. If, after a notice of sale is recorded under this subsection (16)(a), the mediator subsequently issues a certification finding that the beneficiary violated the duty of good faith, the certification constitutes a basis for the borrower to enjoin the foreclosure.
(b) If a borrower has been referred to mediation after the notice of sale was recorded, the sale may not occur until the trustee receives the mediator's certification stating that the mediation has been completed.
(17) A mediator may charge reasonable fees as authorized by this subsection or as authorized by the department. Unless the fee is waived, the parties agree otherwise, or the department otherwise authorizes, a foreclosure mediator's fee may not exceed $400 for preparing, scheduling, and conducting a mediation session lasting between one hour and three hours. For a mediation session exceeding three hours, the foreclosure mediator may charge a reasonable fee, as authorized by the department. The mediator must provide an estimated fee before the mediation, and payment of the mediator's fee must be divided equally between the beneficiary and the borrower. The beneficiary and the borrower must tender the loan mediator's fee within 30 calendar days from receipt of the department's letter referring the parties to mediation or pursuant to the mediator's instructions.
(18) Beginning December 1, 2012, and every year thereafter, the department shall report annually to the legislature on:
(a) The performance of the program, including the numbers of borrowers who are referred to mediation by a housing counselor or attorney;
(b) The results of the mediation program, including the number of mediations requested by housing counselors and attorneys, the number of certifications of good faith issued, the number of borrowers and beneficiaries who failed to mediate in good faith, and the reasons for the failure to mediate in good faith, if known, the numbers of loans restructured or modified, the change in the borrower's monthly payment for principal and interest and the number of principal write-downs and interest rate reductions, and, to the extent practical, the number of borrowers who report a default within a year of restructuring or modification;
(c) The information received by housing counselors regarding outcomes of foreclosures; and
(d) Any recommendations for changes to the statutes regarding the mediation program.
(19) This section does not apply to certain federally insured depository institutions, as specified in RCW 61.24.166
.
[
2023 c 206 s 5
;
2018 c 306 s 6
;
2014 c 164 s 3
;
2012 c 185 s 6
;
2011 2nd sp.s. c 4 s 1
;
2011 c 58 s 7
.]
NOTES:
Effective date
—
2011 2nd sp.s. c 4:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [December 20, 2011]." [
2011 2nd sp.s. c 4 s 3
.]
Findings
—
Intent
—
Short title
—
2011 c 58:
See notes following RCW 61.24.005
.
PDF
RCW 61.24.163
Foreclosure mediation program
—
Timelines
—
Procedures
—
Duties and responsibilities of mediator, borrower, unit owner, and beneficiary
—
Fees
—
Annual report.
(Effective January 1, 2026.)
(1) The foreclosure mediation program established in this section applies only to borrowers or unit owners who have been referred to mediation by a housing counselor or attorney. The mediation program under this section is not governed by chapter
7.07
RCW and does not preclude mediation required by a court or other provision of law.
(2) For deed of trust foreclosure, the referral to mediation may be made any time after a notice of default has been issued but no later than 90 days prior to the date of sale listed in the notice of trustee's sale. If an amended notice of trustee's sale is recorded after the trustee sale has been stayed pursuant to RCW 61.24.130, the borrower may be referred to mediation no later than 25 days prior to the date of sale listed in the amended notice of trustee's sale. If the borrower has failed to elect to mediate within the applicable time frame, the borrower and the beneficiary may, but are under no duty to, agree in writing to enter the foreclosure mediation program.
(3) For association foreclosures, the referral to mediation may be made as specified in RCW 61.24.155
(7). If the unit owner has failed to elect to mediate within the applicable time frame, the unit owner and the association may, but are under no duty to, agree in writing to enter the foreclosure mediation program.
(4) A housing counselor or attorney referring a borrower or unit owner to mediation shall send a notice to the borrower or unit owner and the department, stating that mediation is appropriate.
(5) Within 10 days of receiving the notice, the department shall:
(a) Send a notice to the beneficiary or association, the borrower or unit owner, the housing counselor or attorney who referred the borrower, and the trustee, if applicable, stating that the parties have been referred to mediation. The notice must include the statements and list of documents and information described in subsections (6) and (7) of this section and a statement explaining each party's responsibility to pay the mediator's fee; and
(b) Select a mediator and notify the parties of the selection.
(6) For deed of trust foreclosures:
(a) Within 23 days of the department's notice that the parties have been referred to mediation, the borrower shall transmit the documents required for mediation to the mediator and the beneficiary. The required documents include an initial homeowner financial information worksheet as required by the department. The worksheet must include, at a minimum, the following information:
(i) The borrower's current and future income;
(ii) Debts and obligations;
(iii) Assets;
(iv) Expenses;
(v) Tax returns for the previous two years;
(vi) Hardship information;
(vii) Other applicable information commonly required by any applicable federal mortgage relief program.
(b) Within 20 days of the beneficiary's receipt of the borrower's documents under this subsection, the beneficiary shall transmit the documents required for mediation to the mediator and the borrower. The required documents include:
(i) An accurate statement containing the balance of the loan within 30 days of the date on which the beneficiary's documents are due to the parties;
(ii) Copies of the note and deed of trust;
(iii) Proof that the entity claiming to be the beneficiary is the owner of any promissory note or obligation secured by the deed of trust. Sufficient proof may be a copy of the declaration described in RCW 61.24.030
(7)(a);
(iv) The best estimate of any arrearage and an itemized statement of the arrearages;
(v) An itemized list of the best estimate of fees and charges outstanding;
(vi) The payment history and schedule for the preceding twelve months, or since default, whichever is longer, including a breakdown of all fees and charges claimed;
(vii) All borrower-related and mortgage-related input data used in any net present values analysis. If no net present values analysis is required by the applicable federal mortgage relief program, then the input data required under the federal deposit insurance corporation and published in the federal deposit insurance corporation loan modification program guide, or if that calculation becomes unavailable, substantially similar input data as determined by the department;
(viii) An explanation regarding any denial for a loan modification, forbearance, or other alternative to foreclosure in sufficient detail for a reasonable person to understand why the decision was made;
(ix) Appraisal or other broker price opinion most recently relied upon by the beneficiary not more than 90 days old at the time of the scheduled mediation; and
(x) The portion or excerpt of the pooling and servicing agreement or other investor restriction that prohibits the beneficiary from implementing a modification, if the beneficiary claims it cannot implement a modification due to limitations in a pooling and servicing agreement or other investor restriction, and documentation or a statement detailing the efforts of the beneficiary to obtain a waiver of the pooling and servicing agreement or other investor restriction provisions.
(7) For association foreclosures:
(a) Within 23 days of the department's notice that the parties have been referred to mediation, the association shall transmit the documents required for mediation to the mediator and the unit owner. The required documents include:
(i) An itemized ledger for the preceding 12 months, or since the assessments became past due, whichever is longer. The ledger shall include an itemized list of all dues, fines, special assessments, and any other charges owed, with the date and amount for each item. The ledger should include the total balance owed at the time the ledger is transmitted, accurate within 30 days of the date on which the association's documents are due to the parties;
(ii) Copies of all association liens placed against the property;
(iii) Copies of the current association declarations, bylaws, and any other governing documents for the association.
(b) Within 20 days of the unit owner's receipt of the association's documents, the unit owner shall transmit the documents required for mediation to the mediator and the association. The required documents include:
(i) Evidence of any unit owner payments to the association that are not reflected on the association ledger, if any;
(ii) Statement of hardship, if relevant;
(iii) If the unit owner is interested in a payment plan, a proposed schedule of payments to resolve the arrears.
(8) Within 70 days of receiving the referral from the department, the mediator shall convene a mediation session in the county where the property is located, unless the parties agree on another location. The parties may agree to extend the time in which to schedule the mediation session. If the parties agree to extend the time, the beneficiary or association shall notify the trustee, if applicable, of the extension and the date the mediator is expected to issue the mediator's certification.
(9)(a) The mediator may schedule phone conferences, consultations with the parties individually, and other communications to ensure that the parties have all the necessary information and documents to engage in a productive mediation.
(b) The mediator must send written notice of the time, date, and location of the mediation session to the borrower or unit owner, the beneficiary or association, and the department at least 30 days prior to the mediation session. At a minimum, the notice must contain:
(i) A statement that the borrower or unit owner may be represented in the mediation session by an attorney or other advocate;
(ii) A statement that a person with authority to agree to a resolution, including a proposed settlement, loan modification, repayment plan for assessments, modification of obligations related to the payment of assessments, or dismissal or continuation of the foreclosure proceeding, must be present either in person or on the telephone or videoconference during the mediation session; and
(iii) A statement that the parties have a duty to mediate in good faith and that failure to mediate in good faith may impair the beneficiary's or association's ability to foreclose on the property or the borrower's or unit owner's ability to modify the loan, modify obligations relating to the payment of assessments, or take advantage of other alternatives to foreclosure.
(10)(a) The borrower, the beneficiary or authorized agent, and the mediator must meet in person for the mediation session. In an association foreclosure, the unit owner and association or authorized agent and the mediator are encouraged to meet in person for the mediation session, but may meet by telephone or videoconference. However, a person with authority to agree to a resolution on behalf of the beneficiary or association may be present over the telephone or videoconference during the mediation session.
(b) After the mediation session commences, the mediator may continue the mediation session once, and any further continuances must be with the consent of the parties.
(11) For deed of trust foreclosures, the participants in mediation must address the issues of foreclosure that may enable the borrower and the beneficiary to reach a resolution, including but not limited to reinstatement, modification of the loan, restructuring of the debt, or some other workout plan. To assist the parties in addressing issues of foreclosure, the mediator may require the participants to consider the following:
(a) The borrower's current and future economic circumstances, including the borrower's current and future income, debts, and obligations for the previous 60 days or greater time period as determined by the mediator;
(b) The net present value of receiving payments pursuant to a modified mortgage loan as compared to the anticipated net recovery following foreclosure;
(c) Any affordable loan modification calculation and net present value calculation when required under any federal mortgage relief program and any modification program related to loans insured by the federal housing administration, the veterans administration, and the rural housing service. If such a calculation is not provided or required, then the beneficiary must provide the net present value data inputs established by the federal deposit insurance corporation and published in the federal deposit insurance corporation loan modification program guide or other net present value data inputs as designated by the department. The mediator may run the calculation in order for a productive mediation to occur and to comply with the mediator certification requirement; and
(d) Any other loss mitigation guidelines to loans insured by the federal housing administration, the veterans administration, and the rural housing service, if applicable.
(12) For association foreclosures, the participants in mediation must address the issues which led to foreclosure that may enable the unit owner and the association to reach a resolution including, but not limited to, a delinquent assessment payment plan, waiver of association imposed late fees or attorneys' fees, modification of a delinquent assessment, modification of late fees or charges associated with a delinquent assessment, or any other workout plan.
(13) A violation of the duty to mediate in good faith as required under this section may include:
(a) Failure to timely participate in mediation without good cause;
(b) Failure of the borrower, the unit owner, the beneficiary, or the association to provide the documentation required before mediation or pursuant to the mediator's instructions;
(c) Failure of a party to designate representatives with adequate authority to fully settle, compromise, or otherwise reach resolution with the borrower or unit owner in mediation;
(d) A request by a beneficiary that the borrower waive future claims he or she may have in connection with the deed of trust, as a condition of agreeing to a modification, except for rescission claims under the federal truth in lending act. Nothing in this section precludes a beneficiary from requesting that a borrower dismiss with prejudice any pending claims against the beneficiary, its agents, loan servicer, or trustee, arising from the underlying deed of trust, as a condition of modification; and
(e) A request by the association that the unit owner waive future claims against the association. Nothing in this section precludes an association from requesting that a unit owner dismiss any civil claims against the association related to the present delinquency.
(14) If the mediator reasonably believes a borrower or unit owner will not attend a mediation session based on the borrower's or unit owner's conduct, such as the lack of response to the mediator's communications, the mediator may cancel a scheduled mediation session and send a written cancellation to the department and the trustee and send copies to the parties. The beneficiary or association may proceed with the foreclosure after receipt of the mediator's written confirmation of cancellation.
(15) Within seven business days after the conclusion of the mediation session, the mediator must send a written certification to the department and the trustee and send copies to the parties of:
(a) The date, time, and location of the mediation session;
(b) The names of all persons attending in person and by telephone or videoconference, at the mediation session;
(c) Whether a resolution was reached by the parties, including whether the default or delinquency was cured by reinstatement, modification, or restructuring of the debt, repayment plan, or some other alternative to foreclosure was agreed upon by the parties;
(d) Whether the parties participated in the mediation in good faith; and
(e) For deed of trust foreclosures, if a written agreement was not reached, a description of any net present value test used, along with a copy of the inputs, including the result of any net present value test expressed in a dollar amount.
(16) If the parties are unable to reach an agreement, the beneficiary or association may proceed with the foreclosure after receipt of the mediator's written certification.
(17)(a) The mediator's certification that the beneficiary or association failed to act in good faith in mediation constitutes a defense to the nonjudicial foreclosure action that was the basis for initiating the mediation. In any action to enjoin the foreclosure, the beneficiary or association is entitled to rebut the allegation that it failed to act in good faith.
(b) The mediator's certification that the beneficiary or association failed to act in good faith during mediation does not constitute a defense to a judicial foreclosure or a future nonjudicial foreclosure action if a modification of the loan or delinquent assessment payment plan is agreed upon and the borrower subsequently defaults or unit owner fails to pay assessments.
(c) If an affordable loan modification is not offered in the mediation or a written agreement was not reached and the mediator's certification shows that the net present value of the modified loan exceeds the anticipated net recovery at foreclosure, that showing in the certification constitutes a basis for the borrower to enjoin the foreclosure.
(18) The mediator's certification that the borrower or unit owner failed to act in good faith in mediation authorizes the beneficiary or association to proceed with the foreclosure.
(19)(a) If a borrower or unit owner has been referred to mediation before a notice of trustee sale has been recorded, a trustee may not record the notice of sale until the trustee receives the mediator's certification stating that the mediation has been completed. If the trustee does not receive the mediator's certification, the trustee may record the notice of sale after 10 days from the date the certification to the trustee was due. If, after a notice of sale is recorded under this subsection (19)(a), the mediator subsequently issues a certification finding that the beneficiary or association violated the duty of good faith, the certification constitutes a basis for the borrower or unit owner to enjoin the foreclosure.
(b) If a borrower or unit owner has been referred to mediation after the notice of sale was recorded, the sale may not occur until the trustee receives the mediator's certification stating that the mediation has been completed.
(c) If a unit owner has been referred to mediation before the filing of a judicial foreclosure, the association may not file a complaint for judicial foreclosure until the association receives the mediator's certification stating that the mediation has been completed. If a unit owner has been referred to mediation after the filing of a judicial foreclosure, but prior to the issuance of a judgment in the foreclosure action, the association may not seek judgment in the foreclosure action until the association receives the mediator's certification stating that the mediation has been completed. If the association does not receive the mediator's certification, the association may file for judicial foreclosure or move for judgment in a judicial foreclosure action after 10 days from the date the certification to the association was due. If an association entitled to bring a judicial foreclosure action participates in mediation under this section, the time spent in mediation shall not be a part of the time limited for the commencement of the judicial foreclosure action.
(20) A mediator may charge reasonable fees as authorized by this subsection or as authorized by the department. Unless the fee is waived, the parties agree otherwise, or the department otherwise authorizes, a foreclosure mediator's fee may not exceed $400 for preparing, scheduling, and conducting a mediation session lasting between one hour and three hours. For a mediation session exceeding three hours, the foreclosure mediator may charge a reasonable fee, as authorized by the department. The mediator must provide an estimated fee before the mediation, and payment of the mediator's fee must be divided equally between the beneficiary and the borrower, or between the association and the unit owner. The beneficiary and the borrower, or the association and the unit owner, must tender the mediator's fee within 30 calendar days from receipt of the department's letter referring the parties to mediation or pursuant to the mediator's instructions.
(21) For association foreclosures, the unit owner and the association shall be responsible for their own respective attorneys' fees, if any are incurred during mediation under this section. Legal representation is not required for either party participating in an association foreclosure mediation.
(22) Beginning December 1, 2012, and every year thereafter, the department shall report annually to the legislature on:
(a) The performance of the program, including the number of borrowers who are referred to mediation by a housing counselor or attorney. Beginning December 1, 2026, the report must also include the number of unit owners who are referred to mediation by a housing counselor or attorney;
(b) The results of the mediation program, including the number of mediations requested by housing counselors and attorneys, the number of certifications of good faith issued, the number of borrowers and beneficiaries who failed to mediate in good faith, and the reasons for the failure to mediate in good faith, if known, the numbers of loans restructured or modified, the change in the borrower's monthly payment for principal and interest and the number of principal write-downs and interest rate reductions, and, to the extent practical, the number of borrowers who report a default within a year of restructuring or modification. Beginning December 1, 2026, the report must also include the number of unit owners and associations who failed to mediate in good faith, and the reasons for the failure to mediate in good faith, if known, the number of debts for delinquent assessments restructured or modified, the change in the unit owner's periodic assessment payments including any reductions in late charges or interest rates, and, to the extent practical, the number of unit owners who report a delinquency within a year of restructuring or modification;
(c) The information received by housing counselors regarding outcomes of foreclosures; and
(d) Any recommendations for changes to the statutes regarding the mediation program.
(23) This section does not apply to certain federally insured depository institutions, as specified in RCW 61.24.166
.
(24) The department shall make information and resources regarding common interest community foreclosures and related foreclosure programs and resources publicly available online. The information shall be made available in language translations that the department provides in its other programs and when the information is requested verbally the department shall use a phone-based or other similar interpretive service. The information to be provided must include, but is not limited to, the following:
(a) The housing counseling program;
(b) The meet and confer process;
(c) The foreclosure mediation program;
(d) Language translations of the notice of delinquency for past due assessments; and
(e) Any other programs and resources that the department determines are relevant.
[
2025 c 393 s 3
;
2023 c 206 s 5
;
2018 c 306 s 6
;
2014 c 164 s 3
;
2012 c 185 s 6
;
2011 2nd sp.s. c 4 s 1
;
2011 c 58 s 7
.]
NOTES:
Effective dates
—
2025 c 393 ss 1-4, 5-7, and 11-14:
See note following RCW 61.24.005
.
Effective date
—
2011 2nd sp.s. c 4:
"This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [December 20, 2011]." [
2011 2nd sp.s. c 4 s 3
.]
Findings
—
Intent
—
Short title
—
2011 c 58:
See notes following RCW 61.24.005
.
RCW 61.24.165
Application of RCW 61.24.163
.
(Effective until January 1, 2026.)
(1) RCW 61.24.163
applies only to deeds of trust that are recorded against residential real property of up to four units.
(2) RCW 61.24.163
does not apply to deeds of trust:
(a) Securing a commercial loan;
(b) Securing obligations of a grantor who is not the borrower or a guarantor;
(c) Securing a purchaser's obligations under a seller-financed sale; or
(d) Where the grantor is a partnership, corporation, or limited liability company, or where the property is vested in a partnership, corporation, or limited liability company at the time the notice of default is issued.
(3) RCW 61.24.163
does not apply to association beneficiaries subject to chapter
64.32, 64.34, or
64.38
RCW.
(4) For purposes of referral and mediation under RCW 61.24.163, a person may be referred to mediation if the borrower is deceased and the person is a successor in interest of the deceased borrower. The referring counselor or attorney must determine a person's eligibility under this section and indicate the grounds for eligibility on the referral to mediation submitted to the department. For the purposes of mediation under RCW 61.24.163, the person must be treated as a "borrower." This subsection does not impose an affirmative duty on the beneficiary to accept an assumption of the loan.
(5) For purposes of referral and mediation under RCW 61.24.163, a person may be referred to mediation if the person has been awarded title to the property in a proceeding for dissolution or legal separation. The referring counselor or attorney must determine the person's eligibility under this section and indicate the grounds for eligibility on the referral to mediation submitted to the department. For the purposes of mediation under RCW 61.24.163, the person must be treated as a "borrower." This subsection does not impose an affirmative duty on the beneficiary to accept an assumption of the loan.
[
2023 c 206 s 6
;
2021 c 151 s 6
;
2014 c 164 s 4
;
2011 c 58 s 8
.]
NOTES:
Effective date
—
2021 c 151 ss 1-4, 6-8, and 10:
See note following RCW 61.24.005
.
Findings
—
Intent
—
2021 c 151:
See note following RCW 61.24.005
.
Findings
—
Intent
—
Short title
—
2011 c 58:
See notes following RCW 61.24.005
.
PDF
RCW 61.24.165
Application of RCW 61.24.163
.
(Effective January 1, 2026, until January 1, 2028.)
(1) Except as provided in subsection (3) of this section, RCW 61.24.163
applies only to deeds of trust that are recorded against residential real property of up to four units.
(2) RCW 61.24.163
does not apply to deeds of trust:
(a) Securing a commercial loan;
(b) Securing obligations of a grantor who is not the borrower or a guarantor;
(c) Securing a purchaser's obligations under a seller-financed sale; or
(d) Where the grantor is a partnership, corporation, or limited liability company, or where the property is vested in a partnership, corporation, or limited liability company at the time the notice of default is issued.
(3) RCW 61.24.163
also applies to associations seeking to foreclose liens or deficiencies via nonjudicial or judicial foreclosure.
(4) For purposes of referral and mediation under RCW 61.24.163, a person may be referred to mediation if the borrower or unit owner is deceased and the person is a successor in interest of the deceased borrower or unit owner. The referring counselor or attorney must determine a person's eligibility under this section and indicate the grounds for eligibility on the referral to mediation submitted to the department. For the purposes of mediation under RCW 61.24.163, the person must be treated as a "borrower" or "unit owner." This subsection does not impose an affirmative duty on the beneficiary to accept an assumption of the loan.
(5) For purposes of referral and mediation under RCW 61.24.163, a person may be referred to mediation if the person has been awarded title to the property in a proceeding for dissolution or legal separation. The referring counselor or attorney must determine the person's eligibility under this section and indicate the grounds for eligibility on the referral to mediation submitted to the department. For the purposes of mediation under RCW 61.24.163, the person must be treated as a "borrower" or "unit owner." This subsection does not impose an affirmative duty on the beneficiary to accept an assumption of the loan.
[
2025 c 393 s 4
;
2023 c 206 s 6
;
2021 c 151 s 6
;
2014 c 164 s 4
;
2011 c 58 s 8
.]
NOTES:
Effective dates
—
2025 c 393 ss 1-4, 5-7, and 11-14:
See note following RCW 61.24.005
.
Expiration date
—
2025 c 393 ss 1, 2, 4, 11-13, and 15-17:
See note following RCW 61.24.005
.
Effective date
—
2021 c 151 ss 1-4, 6-8, and 10:
See note following RCW 61.24.005
.
Findings
—
Intent
—
2021 c 151:
See note following RCW 61.24.005
.
Findings
—
Intent
—
Short title
—
2011 c 58:
See notes following RCW 61.24.005
.
PDF
RCW 61.24.165
Application of RCW 61.24.163
.
(Effective January 1, 2028.)
(1) Except as provided in subsection (3) of this section, RCW 61.24.163
applies only to deeds of trust that are recorded against residential real property of up to four units.
(2) RCW 61.24.163
does not apply to deeds of trust:
(a) Securing a commercial loan;
(b) Securing obligations of a grantor who is not the borrower or a guarantor;
(c) Securing a purchaser's obligations under a seller-financed sale; or
(d) Where the grantor is a partnership, corporation, or limited liability company, or where the property is vested in a partnership, corporation, or limited liability company at the time the notice of default is issued.
(3) RCW 61.24.163
also applies to associations seeking to foreclose liens or deficiencies via nonjudicial or judicial foreclosure.
(4) For purposes of referral and mediation under RCW 61.24.163, a person may be referred to mediation if the borrower or unit owner is deceased and the person is a successor in interest of the deceased borrower or unit owner. The referring counselor or attorney must determine a person's eligibility under this section and indicate the grounds for eligibility on the referral to mediation submitted to the department. For the purposes of mediation under RCW 61.24.163, the person must be treated as a "borrower" or "unit owner." This subsection does not impose an affirmative duty on the beneficiary to accept an assumption of the loan.
(5) For purposes of referral and mediation under RCW 61.24.163, a person may be referred to mediation if the person has been awarded title to the property in a proceeding for dissolution or legal separation. The referring counselor or attorney must determine the person's eligibility under this section and indicate the grounds for eligibility on the referral to mediation submitted to the department. For the purposes of mediation under RCW 61.24.163, the person must be treated as a "borrower" or "unit owner." This subsection does not impose an affirmative duty on the beneficiary to accept an assumption of the loan.
[
2025 c 393 s 6
;
2024 c 321 s 413
;
2023 c 206 s 6
;
2021 c 151 s 6
;
2014 c 164 s 4
;
2011 c 58 s 8
.]
NOTES:
Effective dates
—
2025 c 393 ss 1-4, 5-7, and 11-14:
See note following RCW 61.24.005
.
Effective dates
—
2024 c 321 ss 319 and 401-432:
See note following RCW 64.90.485
.
Effective date
—
2021 c 151 ss 1-4, 6-8, and 10:
See note following RCW 61.24.005
.
Findings
—
Intent
—
2021 c 151:
See note following RCW 61.24.005
.
Findings
—
Intent
—
Short title
—
2011 c 58:
See notes following RCW 61.24.005
.
RCW 61.24.166
Application of RCW 61.24.163
to federally insured depository institutions
—
Annual application for exemption.
(1) Beginning on January 1, 2024, the provisions of RCW 61.24.163
do not apply to any federally insured depository institution, as defined in 12 U.S.C. Sec. 461(b)(1)(A), that certifies to the department under penalty of perjury that it was not a beneficiary of deeds of trust in more than 250 trustee sales of residential real property of up to four units that occurred in this state during the preceding calendar year. A federally insured depository institution certifying that RCW 61.24.163
does not apply must do so annually, beginning no later than January 31, 2024, and no later than January 31st of each year thereafter.
(2) During the 2023 calendar year, the provisions of RCW 61.24.163
do not apply to any federally insured depository institution, as defined in 12 U.S.C. Sec. 461(b)(1)(A), that certifies to the department under penalty of perjury that it was not a beneficiary of deeds of trust in more than 250 trustee sales of owner-occupied residential real property that occurred in this state during 2019. A federally insured depository institution certifying that RCW 61.24.163
does not apply pursuant to this subsection must do so no later than 30 days after May 1, 2023.
(3) This section applies retroactively to January 1, 2023, and prospectively beginning with May 1, 2023.
[
2023 c 206 s 7
;
2021 c 151 s 7
;
2011 c 58 s 9
.]
NOTES:
Effective date
—
2023 c 206 ss 7-9 and 12:
"Sections 7 through 9 and 12 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately [May 1, 2023]." [
2023 c 206 s 13
.]
Effective date
—
2021 c 151 ss 1-4, 6-8, and 10:
See note following RCW 61.24.005
.
Findings
—
Intent
—
2021 c 151:
See note following RCW 61.24.005
.
Findings
—
Intent
—
Short title
—
2011 c 58:
See notes following RCW 61.24.005
.
RCW 61.24.169
Department maintains list of approved foreclosure mediators
—
Training program
—
Mediator involvement in civil action.
(1) For the purposes of RCW 61.24.163, the department must maintain a list of approved foreclosure mediators. The department may approve the following persons to serve as foreclosure mediators under this section if the person has completed ten mediations and either a forty-hour mediation course and sixty hours of mediating or has two hundred hours experience mediating:
(a) Attorneys who are active members of the Washington state bar association;
(b) Employees of United States department of housing and urban development-approved housing counseling agencies or approved by the Washington state housing finance commission;
(c) Employees or volunteers of dispute resolution centers under chapter
7.75
RCW;
(d) Retired judges of Washington courts; and
(e) Other experienced mediators.
(2) The department may establish a required training program for foreclosure mediators and may require mediators to acquire training before being approved. The mediators must be familiar with relevant aspects of the law, have knowledge of community-based resources and mortgage assistance programs, and refer borrowers to these programs where appropriate.
(3) The department may remove any mediator from the approved list of mediators.
(4)(a) A mediator under this section is immune from suit in any civil action based on any proceedings or other official acts performed in his or her capacity as a foreclosure mediator, except in cases of willful or wanton misconduct.
(b) A mediator is not subject to discovery or compulsory process to testify in any litigation pertaining to a foreclosure action between the parties. However, the mediator's certification and all information and material presented as part of the mediation process may be deemed admissible evidence, subject to court rules, in any litigation pertaining to a foreclosure action between the parties.
[
2012 c 185 s 7
;
2011 2nd sp.s. c 4 s 2
;
2011 c 58 s 10
.]
NOTES:
Effective date
—
2011 2nd sp.s. c 4:
See note following RCW 61.24.163
.
Findings
—
Intent
—
Short title
—
2011 c 58:
See notes following RCW 61.24.005
.
RCW 61.24.172
Foreclosure fairness account created
—
Uses.
The foreclosure fairness account is created in the custody of the state treasurer. All receipts received under RCW *
61.24.174, as it existed prior to July 1, 2016, **
61.24.173, 61.24.190, and
61.24.157
must be deposited into the account. Only the director of the department of commerce or the director's designee may authorize expenditures from the account. Funding to agencies and organizations under this section must be provided by the department through an interagency agreement or other applicable contract instrument. The account is subject to allotment procedures under chapter
43.88
RCW, but an appropriation is not required for expenditures. The funds shall be distributed as follows: (1) 50 percent for the purposes of providing housing counseling activities to benefit borrowers; (2) eight percent to the office of the attorney general to be used by the consumer protection division to enforce this chapter; (3) 16.5 percent to the office of civil legal aid to be used for the purpose of contracting with qualified legal aid programs for legal representation of homeowners in matters relating to foreclosure; (4) 15 percent to fund the foreclosure prevention hotline; (5) 0.5 percent to fund outreach; and (6) 10 percent to the department to be used for implementation and operation of the foreclosure fairness act. Funds provided under subsection (3) of this section must be used to supplement, not supplant, other federal, state, and local funds.
The department shall enter into interagency agreements to contract with the Washington state housing finance commission and other appropriate entities to implement the foreclosure fairness act.
[
2025 c 393 s 9
;
2021 c 151 s 9
;
2016 c 196 s 1
;
2015 3rd sp.s. c 4 s 965
;
2014 c 164 s 5
;
2012 c 185 s 12
;
2011 c 58 s 11
.]
NOTES:
Reviser's note:
*(1) RCW 61.24.174
was repealed by
2016 c 196 s 4
.
**(2) RCW 61.24.173
was repealed by 2021 c 151 s 13, effective June 30, 2023.
Effective date
—
2021 c 151 ss 5, 9, 11, and 12:
See note following RCW 61.24.135
.
Findings
—
Intent
—
2021 c 151:
See note following RCW 61.24.005
.
Effective date
—
2016 c 196:
"This act takes effect July 1, 2016." [
2016 c 196 s 6
.]
Effective dates
—
2015 3rd sp.s. c 4:
See note following RCW 28B.15.069
.
Effective date
—
2012 c 185 s 12:
"Section 12 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 29, 2012]." [
2012 c 185 s 15
.]
Effective date
—
2011 c 58 ss 11, 12, and 16:
"Sections 11, 12, and 16 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately [April 14, 2011]." [
2011 c 58 s 19
.]
Findings
—
Intent
—
Short title
—
2011 c 58:
See notes following RCW 61.24.005
.
RCW 61.24.180
Trustee as defendant
—
Declaration of nonmonetary status
—
Objection.
(1) If a trustee under a deed of trust is named as a defendant in an action or proceeding in which that deed of trust is the subject, and if there are no substantive allegations that seek damages from the trustee or seek to enjoin the foreclosure based on any alleged unlawful actions or omissions by the trustee, including causes of action where the trustee is a codefendant alleged to be jointly or derivatively liable with respect to the trustee's conduct as to the borrower or the trustee's statutory obligations, not less than thirty-five days after service of the summons and complaint on the trustee, the trustee may file a declaration of nonmonetary status. The declaration must be served on the parties in the manner set forth in superior court civil rule (CR) 5.
(2) The declaration of nonmonetary status must set forth:
(a) The status of the trustee as trustee under the deed of trust that is the subject of the action or proceeding;
(b) That the complaint or pleading does not assert any substantive allegations that seek damages from the trustee or seek to enjoin the foreclosure based on any alleged unlawful actions or omissions by the trustee;
(c) That it has been named as a defendant in the proceeding solely in its capacity as a trustee under the deed of trust and that the trustee agrees to be bound by whatever order or judgment is issued by the court regarding the subject deed of trust;
(d) A statement printed in no less than twelve-point font and bolded that reads:
"You have 30 days from service of this declaration to file and serve an objection with the court in compliance with RCW 61.24.180
. If you do not timely object, the trustee will be deemed a nominal party to this action and you may not seek monetary relief against it. Your case may also be removed to federal court if the trustee was the only defendant domiciled in Washington."
(3) The parties who have appeared in the action or proceeding have thirty days from the service of the declaration by the trustee in which to object to the nonmonetary status of the trustee. Any objection must set forth the allegations against the trustee in a manner sufficient to satisfy the pleading standard of superior court civil rule (CR) 8(a).
(4) The objection must:
(a) Conform to superior court civil rule (CR) 10 and the caption must include the following identification: "Objection to Declaration of Nonmonetary Status of Defendant [trustee]";
(b) Contain a short and plain statement of the claim against defendant trustee as described in the complaint, showing that the plaintiff is entitled to relief. Allegations against the trustee may not be raised for the first time in the objection;
(c) Be filed with the court within thirty days of service of the trustee's declaration of nonmonetary status described in subsection (1) of this section;
(d) Be served on the trustee in the manner set forth in superior court civil rule (CR) 5.
(5) Upon filing of a timely objection with the court and timely service of the objection, the trustee must thereafter be required to participate in the action or proceeding.
(6) If an objection is not filed and served within the thirty-day objection period, the trustee: Is not required to participate any further in the action or proceeding; is not subject to any monetary awards as and for damages, attorneys' fees, or costs; and is bound by any court order relating to the subject deed of trust that is the subject of the action or proceeding. The trustee's nonmonetary status is not established until the thirty-day objection period has passed without filing and service of an objection pursuant to subsection (5) of this section.
(7) In the event a party or parties elect not to or fail to timely object to the declaration of nonmonetary status, but later through discovery or otherwise determine that the trustee should participate in the action, the parties may file and serve on all parties and the trustee a motion pursuant to superior court civil rule (CR) 15. Upon the court's granting of the motion, the trustee must thereafter be required to participate in the action or proceeding, and the court must provide sufficient time before trial for the trustee to be able to respond to the complaint, to conduct discovery, and to bring other pretrial motions in accordance with Washington superior court civil rules.
(8) Upon the filing of the declaration of nonmonetary status, the time within which the trustee is required to file an answer or other responsive pleading is tolled for the period of time within which the opposing parties may object to the declaration. Upon the timely service of an objection to the declaration of nonmonetary status, the trustee has thirty days from the date of service within which to file an answer or other responsive pleading to the complaint or cross-complaint.
(9) For purposes of this section, "trustee" includes any agent or employee of the trustee who performs some or all the duties of a trustee under this chapter and includes substituted trustees and agents of the trustee.
(10) If upon objection to the trustee's declaration of nonmonetary status the court finds that the declaration was filed without sufficient support based upon the allegations made in the complaint, the court may award the plaintiff attorneys' fees and costs associated with the objection together with any actual damages demonstrated. Any award may be made after notice and hearing with submission of evidence of the attorneys' fees and damages.
[
2018 c 306 s 8
.]
RCW 61.24.190
Notices of default
—
Requirements
—
Payment
—
Department not civilly liable if no gross negligence in releasing information
—
Application.
(Effective until January 1, 2028.)
(1) Except as provided in subsections (6) and (7) of this section, beginning January 1, 2022, and every quarter thereafter, every beneficiary issuing notices of default, or causing notices of default to be issued on its behalf, on residential real property under this chapter must:
(a) Report to the department, on a form approved by the department, the total number of residential real properties for which the beneficiary has issued a notice of default during the previous quarter, together with the street address, city, and zip code;
(b) Remit the amount required under subsection (2) of this section; and
(c) Report and update beneficiary contact information for the person and work group responsible for the beneficiary's compliance with the requirements of the foreclosure fairness act created in this chapter.
(2) For each residential real property for which a notice of default has been issued, the beneficiary issuing the notice of default, or causing the notice of default to be issued on the beneficiary's behalf, shall remit $250 to the department to be deposited, as provided under RCW 61.24.172, into the foreclosure fairness account. The $250 payment is required per property and not per notice of default. The beneficiary shall remit the total amount required in a lump sum each quarter.
(3) Reporting and payments under subsections (1) and (2) of this section are due within 45 days of the end of each quarter.
(4) For purposes of this section, "residential real property" includes residential real property with up to four dwelling units, whether or not the property or any part thereof is owner occupied.
(5) The department, including its officials and employees, may not be held civilly liable for damages arising from any release of information or the failure to release information related to the reporting required under this section, so long as the release was without gross negligence.
(6)(a) Beginning on January 1, 2023, this section does not apply to any beneficiary or loan servicer that is a federally insured depository institution, as defined in 12 U.S.C. Sec. 461(b)(1)(A), and that certifies under penalty of perjury that it has issued, or has directed a trustee or authorized agent to issue, fewer than 250 notices of default in the preceding year.
(b) During the 2023 calendar year, this section does not apply to any beneficiary or loan servicer that is a federally insured depository institution, as defined in 12 U.S.C. Sec. 461(b)(1)(A), and that certifies under penalty of perjury that fewer than 50 notices of trustee's sale were recorded on its behalf in 2019.
(c) This subsection (6) applies retroactively to January 1, 2023, and prospectively beginning with May 1, 2023.
(7) This section does not apply to association beneficiaries subject to chapter
64.32, 64.34, or
64.38
RCW.
[
2023 c 206 s 8
;
2021 c 151 s 11
.]
NOTES:
Effective date
—
2023 c 206 ss 7-9 and 12:
See note following RCW 61.24.166
.
Effective date
—
2021 c 151 ss 5, 9, 11, and 12:
See note following RCW 61.24.135
.
Findings
—
Intent
—
2021 c 151:
See note following RCW 61.24.005
.
PDF
RCW 61.24.190
Notices of default
—
Requirements
—
Payment
—
Department not civilly liable if no gross negligence in releasing information
—
Application.
(Effective January 1, 2028.)
(1) Except as provided in subsections (6) and (7) of this section, beginning January 1, 2022, and every quarter thereafter, every beneficiary issuing notices of default, or causing notices of default to be issued on its behalf, on residential real property under this chapter must:
(a) Report to the department, on a form approved by the department, the total number of residential real properties for which the beneficiary has issued a notice of default during the previous quarter, together with the street address, city, and zip code;
(b) Remit the amount required under subsection (2) of this section; and
(c) Report and update beneficiary contact information for the person and work group responsible for the beneficiary's compliance with the requirements of the foreclosure fairness act created in this chapter.
(2) For each residential real property for which a notice of default has been issued, the beneficiary issuing the notice of default, or causing the notice of default to be issued on the beneficiary's behalf, shall remit $250 to the department to be deposited, as provided under RCW 61.24.172, into the foreclosure fairness account. The $250 payment is required per property and not per notice of default. The beneficiary shall remit the total amount required in a lump sum each quarter.
(3) Reporting and payments under subsections (1) and (2) of this section are due within 45 days of the end of each quarter.
(4) For purposes of this section, "residential real property" includes residential real property with up to four dwelling units, whether or not the property or any part thereof is owner occupied.
(5) The department, including its officials and employees, may not be held civilly liable for damages arising from any release of information or the failure to release information related to the reporting required under this section, so long as the release was without gross negligence.
(6)(a) Beginning on January 1, 2023, this section does not apply to any beneficiary or loan servicer that is a federally insured depository institution, as defined in 12 U.S.C. Sec. 461(b)(1)(A), and that certifies under penalty of perjury that it has issued, or has directed a trustee or authorized agent to issue, fewer than 250 notices of default in the preceding year.
(b) During the 2023 calendar year, this section does not apply to any beneficiary or loan servicer that is a federally insured depository institution, as defined in 12 U.S.C. Sec. 461(b)(1)(A), and that certifies under penalty of perjury that fewer than 50 notices of trustee's sale were recorded on its behalf in 2019.
(c) This subsection (6) applies retroactively to January 1, 2023, and prospectively beginning with May 1, 2023.
(7) This section does not apply to association beneficiaries subject to chapter
64.90
RCW.
[
2024 c 321 s 414
;
2023 c 206 s 8
;
2021 c 151 s 11
.]
NOTES:
Effective dates
—
2024 c 321 ss 319 and 401-432:
See note following RCW 64.90.485
.
Effective date
—
2023 c 206 ss 7-9 and 12:
See note following RCW 61.24.166
.
Effective date
—
2021 c 151 ss 5, 9, 11, and 12:
See note following RCW 61.24.135
.
Findings
—
Intent
—
2021 c 151:
See note following RCW 61.24.005
.