Holly Chisa
By Holly Chisa, HPC Advocacy, LLC, UTA Washington Lobbyist
On February 12, members of the Washington UTA met with lawmakers in the House and Senate to talk about issues of foreclosure. There were several issues to discuss – the long-standing problem with owner/holder/actual holder in the statute, a bill prohibiting secondary ownership of publishing newspapers, and the FFA as a whole.
These meetings came two weeks after the ruling on the Lyons case by the Washington State Supreme Court. In that case, the Court used the terms ‘owner”’ and ‘holder’ interchangeably, creating an ambiguity in the law. It is, again, unclear whether the trustee can rely on the beneficiary declaration (bene dec) because owner and holder are defined differently in different parts of the statute.
Trustees, meeting with lawmakers, tried to explain this complex issue. There is sympathy within the Legislature to the confusion within the statutes; however, legislation was introduced late into the Washington legislative process to correct the problem. In their meetings with lawmakers, UTA members were asked to work with the other stakeholders over the summer to determine a long-term fix to this long-standing issue.
To that end, UTA is working with Washington lawmakers to plan out meetings to resolve this issue during the summer of 2015. It is time to bring some clarity to the definitions around these discrepancies in statute.
On a positive note, Washington lawmakers had positive comments for the UTA, and how their members have worked with other stakeholders to build and continue to administer the FFA. The industry is being recognized as a key party in developing the program, and UTA members will be part of its ongoing management. As we have noted before, the FFA will continue to evolve, especially as funding sources diminish, and fewer homeowners face foreclosure. As we adjust to “the new normal” economically, there is work to be done to ensure the program changes to accommodate the current foreclosure climate without a pressing financial crisis.