Onerous Washington State Language Improved Significantly

This session in the Washington Legislature addressed foreclosure legislation whose intent is to help tenants of foreclosed properties be protected as the property itself is foreclosed. The legislation was expanded, however, to address the foreclosure process itself. Advocacy groups attempted to include language to prohibit trustees from being allowed to utilize certain agents, alleging that out-of-state agents were taking advantage of homeowners. Language was also proposed to require the trustee to act in the interest of the homeowner, which would have eliminated our impartial role. Others wanted to eliminate the trustees’ involvement in the foreclosure process altogether, jeopardizing the process and sending us to judicial foreclosure as the sole option.

Through the work of our lobbyists, Brad Tower and Holly Chisa of Tower Ltd., we were very successful in removing all of the onerous language to protect the impartial work of the trustees through the foreclosure process, and significantly improve the bill. The final legislation simply reaffirmed that trustees must use agents licensed under the Office of the Insurance Commissioner – which is already current practice – and required that trustees act in good faith when adjudicating foreclosures. Additionally, there is a new requirement that the beneficiary must now produce evidence that they have knowledge of the existence of the note, but there is no requirement that the note itself be present to foreclose. All of the other language that would have been damaging to the profession and the foreclosure process was removed. The bill is expected to be signed by the Governor, with the trustees language protected.