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Bill

HB 1858

Eliminating the exemption for assignments or substitutions of previously recorded deeds of trust from the document recording fee and the covenant homeownership program assessment.

2025-2026 Regular Session Introduced by Beth Doglio and 8 co-sponsors

Washington now requires lenders to pay recording fees and homeownership program assessments when reassigning or substituting previously-recorded mortgage deeds, generating housing program revenue while increasing mortgage transaction costs.

Effective date 7/27/2025.
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Bill Summary · HB 1858

Legislative bill overview

HB 1858 eliminates a previous exemption that allowed assignments or substitutions of already-recorded deeds of trust to avoid paying document recording fees and contributions to Washington's covenant homeownership program assessment. This means that when lenders reassign or substitute mortgages on existing properties, they will now be required to pay the same fees that apply to initial mortgage recordings.

Why is this important

This change generates additional revenue for the state's affordable housing programs (through the covenant homeownership assessment) and the county recording system. The revenue impact could be modest but meaningful for housing initiatives, though it increases costs for mortgage servicers and lenders who frequently reassign loans in the secondary mortgage market.

Potential points of contention

  • Secondary market impacts: Lenders and mortgage servicers argue this creates additional transaction costs that could be passed to borrowers or reduce loan availability in certain markets
  • Revenue allocation concerns: Questions about whether the additional fees are adequately directed to affordable housing versus administrative costs
  • Fairness of retroactive application: Clarification needed on whether the law applies only to assignments after July 27, 2025, or has broader implications for the mortgage industry's operational costs

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

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