SB 5938 Washington Senate · 2025-2026 Regular Session

Concerning the foreclosure prevention fee.

This bill imposes an $80 fee on most residential mortgage loans in Washington at closing, paid by settlement agents and added to the loan if financed. It exempts reverse mortgages for borrowers aged 60 or older, chattel loans for dwellings, and certain homeownership programs (like those under chapter 43.185A RCW). Borrowers must receive a notice about the fee and the statewide foreclosure hotline number. The state must also study using a portion of the fee to create a homeowner assistance fund by July 2027, with the bill expiring August 1, 2028.

Issues: ✓ Housing

Bill status signed all 5 stages cleared

Introduction

Dec 2025

Committee Review

Mar 2026

Senate Passage

Mar 2026

House Passage

Mar 2026

Signed into Law

Mar 2026

Introduced Dec 23, 2025 Signed Mar 23, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Substitute Bill → Substitute Passed Legislature · 5 edits

MODERATE

The bill was certified as passed by both the Senate and House, moving it to final legislative status. The text was cleaned up to remove crossed-out language, clarifying that the $80 foreclosure prevention fee applies broadly to residential mortgage loans with specific exceptions defined in subsection (2), rather than being limited to reverse mortgages or excluding borrower cash contributions.

Scope change

The scope of the fee was broadened by removing language that previously limited the fee to reverse mortgages and excluded borrower cash contributions, making the fee applicable to a wider range of residential mortgage loan closings.

ELIGIBILITY

Removed an exemption that previously limited the fee only to reverse mortgage loans issued to seniors over 61.

Removed language that excluded borrower cash contributions from being used to pay the fee, allowing the fee to be financed from loan proceeds.

REQUIREMENT

Removed a separate section requiring the Department of Commerce to evaluate establishing a new state homeowner assistance fund by July 1, 2027.

TECHNICAL

Added certification text confirming the bill passed both chambers of the legislature and was enrolled for the Secretary of State.

Replaced deleted and crossed-out text with clean, final language to reflect the enacted version of the act.

Floor votes · Senate Mar 9, 2026 · House Mar 3, 2026

How they voted

50–1

Passed

Total votes 51

Mar 9, 2026

D Democratic31

31 Yea

100% Yea

R Republican20

19 Yea 1 Nay

95% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 23, 2026

Signed into law

Governor signed.

executive

Mar 11, 2026

Lower · Passed

Speaker signed.

lower

Mar 10, 2026

Upper · Passed

President signed.

upper

Mar 9, 2026

Upper · Passed

Passed final passage; yeas, 48; nays, 1; absent, 0; excused, 0.

upper

Mar 9, 2026

Upper · Passed

Senate concurred in House amendments.

upper

Mar 3, 2026

Lower · Passed

Committee amendment(s) adopted with no other amendments.

lower

Mar 3, 2026

House · Passed

House Vote: pass (60-36-4)

house

Feb 25, 2026

Committee

Referred to Rules 2 Review.

lower

Feb 23, 2026

Lower · Passed

Minority; without recommendation.

lower

Feb 23, 2026

Lower · Passed

HOUS - Majority; do pass with amendment(s).

lower

Feb 23, 2026

Lower · Passed

Executive action taken in the House Committee on Housing at 1:30 PM.

lower

Feb 19, 2026

Lower · Passed

Public hearing in the House Committee on Housing at 8:30 AM.

lower

Jan 16, 2026

Upper · Passed

Executive action taken in the Senate Committee on Housing at 10:30 AM.

upper

Jan 14, 2026

Upper · Passed

Public hearing in the Senate Committee on Housing at 10:30 AM.

upper

1 primary · 2 co-sponsors