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Bill

Bill

SB 5938

Concerning the foreclosure prevention fee.

2025-2026 Regular Session Introduced by T'wina Nobles and 2 co-sponsors

Washington establishes a foreclosure prevention fee to fund homeowner assistance programs, generating dedicated revenue to help residents avoid losing their homes through financial hardship.

President signed.
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WeVote Research Nonpartisan
Bill Summary · SB 5938

Legislative bill overview

SB 5938 establishes a foreclosure prevention fee in Washington state, likely imposing a charge on certain financial transactions or entities to fund programs that help homeowners avoid losing their homes. The bill passed with overwhelming bipartisan support (48-1) and was signed into law in March 2026.

Why is this important

Foreclosure prevention directly affects housing stability for vulnerable homeowners facing financial hardship. Revenue from this fee could fund counseling, loan modifications, or emergency assistance programs that keep families in their homes and stabilize communities. The mechanism chosen (what entity pays the fee and how much) determines the real economic impact on lenders, borrowers, or other market participants.

Potential points of contention

  • Fee burden allocation: Whether the foreclosure prevention fee falls on lenders, mortgage servicers, or borrowers themselves—this affects who ultimately bears the cost and could influence lending practices or housing affordability
  • Program effectiveness: Questions about whether funds generated will actually prevent foreclosures or if money is adequately targeted to those in greatest need
  • Market impacts: Concerns that fees on lenders could increase mortgage costs or reduce credit availability, potentially harming the very homeowners the bill aims to help

Compiled from official sources — confirm details with the bill’s official record.

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