Washington Legislature Addressing DOT Requirements

Holly Chisa

By Holly Chisa, HPC Advocacy, UTA Washington Lobbyist

Trustees in Washington State have had a very busy session this year in the state Legislature.  In addition to continuing issues around the development and implementation of the foreclosure mediation program, trustees have worked on legislation relating to sale rescissions and other legislation affecting the Deed of Trust Act.

The UTA continues to be an active participant in the negotiations on making changes to last year’s mediation program for nonjudicial foreclosures.  Since the program began July 22, 2011, there have been challenges, and a coalition was formed to negotiate improvements to the program.  The changes, while technical in nature, are many.  A final bill was agreed to in early February, and the bill, HB 2421, will now move through the legislative progress.  The goals of the legislation are to provide a clearer timeline for those in foreclosure, from the initial sending of the NOPFO through the processing of the NOD, into mediation, to final resolution.  The most significant change is the creation of a limited window for an individual to file for mediation past the filing of the NOTS.  When the bill is officially signed into law, UTA will disperse that legislation and an outline out to the members.

UTA also worked on legislation to try and correct a problem within the statute related to rescission of sales in certain, specific circumstances.  This legislation would have allowed a trustee to rescind a sale of a home up to eleven days after the sale if there were an error in the sale, there was a work-out agreement and the trustee was not notified in time to prevent the sale, or other reasons.  The legislation did not pass, but the issue will be worked on during the interim with other interested parties for legislation during the 2013 session.

The Association also provided testimony against legislation that required a “chain of custody” for deeds of trust, and other legislation that creates massive paperwork requirements and filings that burden the deed of trust recording process.  While the issues around MERS and the capitalization of mortgages are not issues for trustees, legislation requiring endless paperwork and documentation can gum up the foreclosure process, and other parts of the deed of trust act.  UTA has recommended to lawmakers that, instead of passing legislation and creating a task force on the issues around chain of custody, they utilize the existing informal group of industries, lawyers, mediators and advocate representatives already meeting on a regular basis to discuss these issues and see if a compromise can be developed there.

Foreclosure and questions around the deeds of trust continue to be foremost in the minds of Legislators in Olympia.  Members of the United Trustees Association remain active participants in helping to educate lawmakers on the impartial, unique role the trustees play in the foreclosure process.  They attend meetings, provide insight and changes to legislation, testify at hearings, and meet with elected officials.  Washington trustees are involved in the legislative process, and are ensuring that whatever laws are passed in Washington work for the industry.