Homebuyers one step closer to safer mortgage experience

OLYMPIA – Buying a home in today’s market can be a scary endeavor. Last fall, the Governor’s Homeowner Security Task Force analyzed the national mortgage crisis and made recommendations for protecting homebuyers.

Today, the Washington Legislature passed the first measure of its 2008 session, a plan to spend $1.5 million on financial literacy education and counseling for homebuyers.

Senate Bill 6272, sponsored by Sen. Jean Berkey, D-Everett, is in response to the task force findings that most new homebuyers do not easily understand the mortgage process or its financial implications. The legislation also provides for information and resources to help homeowners facing foreclosure understand their options.

SB 6272 was approved by the Senate on Jan. 18. The House of Representatives passed the measure today, making it the first bill to clear both chambers in 2008. SB 6272 now goes to Gov. Gregoire, who is expected to sign it into law.

Today, legislation which addresses the remaining task force recommendations regarding responsible mortgage lending and homeownership passed the Senate on a unanimous vote.

Senate Bill 6728, also sponsored by Berkey, calls for full financial disclosure from lenders, no prepayment penalties for refinancing, clearer language in foreclosure notices, and increased protections against lending and foreclosure scams.

“Buying a home for most people can be a stressful time with massive loan documents that are confusing and may have hidden or undisclosed terms and fees,” said Berkey. “This legislation helps homebuyers choose the right lender and understand the commitment they are making.”

SB 6728 now moves to the House for further consideration.

Return to Sen. Berkey's home page