RCW 61.24.172
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Establishes the state account funded by residential mortgage loan origination fees that supports Washington's foreclosure mediation program. Distribution: 50% housing counseling, 16.5% civil legal aid, 15% hotline, 10% Dept. of Commerce, 8% AG enforcement, 0.5% outreach.
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Statutory Text
Verified May 3, 2026 · LEG_WA_GOV
The foreclosure fairness account is created in the custody of the state treasurer. All receipts received under RCW * 61.24.174 , as it existed prior to July 1, 2016, ** 61.24.173 , 61.24.190 , and 61.24.157 must be deposited into the account. Only the director of the department of commerce or the director's designee may authorize expenditures from the account. Funding to agencies and organizations under this section must be provided by the department through an interagency agreement or other applicable contract instrument. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures. The funds shall be distributed as follows: (1) 50 percent for the purposes of providing housing counseling activities to benefit borrowers; (2) eight percent to the office of the attorney general to be used by the consumer protection division to enforce this chapter; (3) 16.5 percent to the office of civil legal aid to be used for the purpose of contracting with qualified legal aid programs for legal representation of homeowners in matters relating to foreclosure; (4) 15 percent to fund the foreclosure prevention hotline; (5) 0.5 percent to fund outreach; and (6) 10 percent to the department to be used for implementation and operation of the foreclosure fairness act. Funds provided under subsection (3) of this section must be used to supplement, not supplant, other federal, state, and local funds. The department shall enter into interagency agreements to contract with the Washington state housing finance commission and other appropriate entities to implement the foreclosure fairness act. [ 2025 c 393 s 9 ; 2021 c 151 s 9 ; 2016 c 196 s 1 ; 2015 3rd sp.s. c 4 s 965 ; 2014 c 164 s 5 ; 2012 c 185 s 12 ; 2011 c 58 s 11 .] Notes: Reviser's note: *(1) RCW 61.24.174 was repealed by 2016 c 196 s 4 . **(2) RCW 61.24.173 was repealed by 2021 c 151 s 13, effective June 30, 2023. Effective date — 2021 c 151 ss 5, 9, 11, and 12: See note following RCW 61.24.135 . Findings — Intent — 2021 c 151: See note following RCW 61.24.005 . Effective date — 2016 c 196: "This act takes effect July 1, 2016." [ 2016 c 196 s 6 .] Effective dates — 2015 3rd sp.s. c 4: See note following RCW 28B.15.069 . Effective date — 2012 c 185 s 12: "Section 12 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 29, 2012]." [ 2012 c 185 s 15 .] Effective date — 2011 c 58 ss 11, 12, and 16: "Sections 11, 12, and 16 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately [April 14, 2011]." …
Enforcement
| Ref | Requirement |
|---|---|
| (1) | Mediation between a struggling homeowner and a foreclosing lienholder (including an HOA pursuing an assessment lien foreclosure under SB 5686) is funded by a dedicated state account paid for by mortgage origination fees — not by general tax dollars. |
| (3) | The other third of account funds the foreclosure prevention hotline, AG consumer-protection enforcement (catching predatory practices), the agency administering the program, and outreach to inform homeowners they have the right to mediation. |
| (3) | Half the account funds free housing counselors who help struggling homeowners navigate foreclosure alternatives — including HOA assessment lien mediation under the expanded SB 5686 program. |
| (3) | Roughly one-sixth of the account pays for free legal aid lawyers to represent homeowners in foreclosure — a critical access-to-justice provision for owners facing HOA assessment lien foreclosure. |
Referenced By
- RCW 64.90.485 References
Other sections in this chapter
Legal Topics
Articles Citing This Statute
Legal references last verified May 23, 2026.
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