19.146.355 - Third-party residential mortgage loan modification services providers -- Duties -- Restrictions. - Washington Statutes

Third-party residential mortgage loan modification services providers — Duties — Restrictions.

(1) In addition to complying with all requirements for loan originators under this chapter, third-party residential mortgage loan modification services providers must:

     (a) Provide a written fee disclosure summary as described in RCW 19.146.353 before accepting any advance fee;

     (b) Not receive an advance fee greater than seven hundred fifty dollars;

     (c) Not charge total fees in excess of usual and customary charges, or total fees that are not reasonable in light of the service provided; and

     (d) Immediately inform the borrower in writing if the owner of the loan requires additional information from the borrower, or if it becomes apparent that a residential mortgage loan modification is not possible.

     (2) As a condition for providing a loan modification or loan modification services, third-party residential mortgage loan modification services providers and individuals servicing a residential mortgage loan must not require or encourage a borrower to:

     (a) Sign a waiver of his or her legal defenses, counterclaims, and other legal rights against the servicer for future acts;

     (b) Sign a waiver of his or her right to contest a future foreclosure;

     (c) Waive his or her right to receive notice before the owner or servicer of the loan initiates foreclosure proceedings;

     (d) Agree to pay charges not enumerated in any agreement between the borrower and the lender, servicer, or owner of the loan; or

     (e) Cease communication with the lender, investor, or loan servicer.

     (3) Failure to comply with subsection (1) of this section is a violation of RCW 19.144.080.

[2010 c 35 § 17.]

Notes: Effective date -- 2010 c 35: See RCW 31.04.904.