Loan Modification Legislation Skirted in Washington – For Now

The Washington State Legislature adjourned on April 12. SB 6648, which would have required mandatory mediation at least 30 days before filing the final note of sale died in the Senate Ways and Means Committee, after passing the Senate Commerce and Labor Committee, UTA’s Washington Lobbyist, Holly Chisa reports. “Other legislation proposed during the regular session would have required a foreclosure be put into abatement if a homeowner was on Unemployment Insurance, forestalling the foreclosure process.”

However, while both of these bills failed to move forward, advocates continue to work to force mandatory loan modification. This summer Initiative 1104 has been proposed. This initiative would require a mandatory loan modification of either a lowering of the mortgage value to the current market price on the home, or a reduction of 2% of the mortgage interest rate.

Read full story