SB 5686 — Expanding and funding the foreclosure mediation program

Expands Washington's Foreclosure Mediation Program to cover unit owners facing assessment lien foreclosure by HOAs, condominiums, and planned communities. Creates a mandatory meet-and-confer process, caps collection fees during the standstill period ($50 or 5% late fee, $10 administrative fee), establishes a $400 mediator fee split between the association and owner, requires 23-day document production, and freezes foreclosure proceedings during active mediation. Funded by an $80 per-loan residential mortgage origination fee generating approximately $7.12 million annually. Applies to all four CIC statutes (RCW 64.32, 64.34, 64.38, 64.90) until WUCIOA-for-all transition on January 1, 2028.