New Document: Washington Foreclosure Prevention Fee Disclosure (Cx28412)

On May 20^th, Washington Senate Bill 5686 passed. In part, this legislation requires an assessment of $80 for a foreclosure prevention fee. The bill also requires the escrow agent, settlement or closing agent to give the borrower a disclosure explaining the purpose of the foreclosure prevention fee. The Washington State Department of Commerce has published guidance and a model form to comply with this requirement. In most transactions, Lenders would not be responsible for providing this disclosure to the borrower. However, there are some circumstances in which the Lender acts as the closing agent in the transaction.

To account for these situations, we have created Cx28412 “WA Foreclosure Prevention Fee Disclosure” based on the model form published by the Washington State Department of Commerce. We have set this disclosure to print in WA Closing packages when FI 193700 (Print Foreclosure Prevention Fee Disclosure) is set to “Yes”.

This new document will be available for use on July 27, 2025, and is currently on Stage servers for testing. Clients who desire to use this document will need to ensure they are setting field 193700 appropriately. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.

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The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third-party should consult with an attorney prior to embarking upon any specific course of action.