Committee hears bill to expand foreclosure mediation to condo/HOA liens and create $80 mortgage fee

The Washington House Housing Committee on March 18 heard testimony on Senate Bill 5,686, which would expand the state’s foreclosure mediation program to include unit owners in common‑interest communities facing foreclosure on association liens and create a new $80 foreclosure prevention fee on most residential mortgage originations to fund the program. Audrey Vaisik, staff to the committee, described the bill and its funding mechanism during the hearing.

The bill would add unit owners of condominiums and other common‑interest communities to the mediation framework established under the deeds of trust statute and the state’s Foreclosure Fairness Act. The expansion would take effect Jan. 1, 2026, according to committee staff. The proposed $80 fee would be remitted at closing by the escrow or settlement agent; reverse mortgages for borrowers over age 61 would be exempt. The Department of Commerce would report annually on fee remittances, and the bill would require an online common‑interest community resource center.

Supporters told the committee the program provides critical legal and counseling services that help people avoid losing homes and that sustainable funding is needed as federal and other temporary…