SB 5275 isn’t the source of this problem.

I don’t know how to look up the history of a section of the RCW (Revised Code of Washington) to find out when this wording was put in there, but it happened at some time in the past.

That said, there is no reason SB 5275 couldn’t be edited to change that wording.

I hate to rain on your parade and we all need hope, however, this bill in my opinion, is trash. It basically just gives the soon to be evicted homeowner more time to make arrangements. Yes, you are correct that the bank must pay a $250 fee to get the “green light” to foreclose, however the couseling fee is split between bank and the soon to be foreclosed on. If this goes well you can bet it will be picked up on by other states…so I hope those in Washington really pick this bill apart before it’s too late. This is copied right from the Bill:

Within seven business days of the mediation the mediator must provide a written certification
to Commerce and the parties including whether the default was cured and the parties acted in
good faith. At this point, the foreclosure proceeding may continue.
Unless agreed otherwise, the mediation fee is not to exceed $400 and includes a mediation
session lasting from one to three hours, paid equally by both parties.
Starting in 2012 and annually thereafter, Commerce is to report to the Legislature the
performance of the program, the results of the mediation program, and any recommendations
for statutory changes.
If a borrower enters into mediation, a trustee may not record a notice of sale until the trustee
has received a certificate provided by the mediator.
Notice of Default Surcharge. For each owner-occupied property for which a notice of
default is issued, beneficiaries are to remit $250 to Commerce to be deposited into the
foreclosure fairness account which funds housing counseling, mediation, enforcement by the
Office of the Attorney General and homeowner representation through the Office of Civil
Legal Aid.
Consumer Protection Act (CPA). It is a violation of the CPA for any party to violate the good
faith requirements of the mediation program or for any person to fail to comply with the meet
and confer requirements.
EFFECT OF CHANGES MADE BY FINANCIAL INSTITUTIONS, HOUSING &
INSURANCE COMMITTEE (Recommended Substitute): If a borrower responds to a
lender’s request and/or works with an approved housing counselor or attorney, the
homeowner may have up to an additional 60 days to negotiate with the lender prior to the
issuance of the notice of default. A housing counselor or attorney working with a homeowner
Senate Bill

How do you explain this then?

“A declaration by the beneficiary (bank) made under penalty of perjury stating that the beneficiary (bank) is the actual holder of the promissory note or other obligation secured by the deed of trust shall be sufficient proof as required under this subsection.”

Why not just produce the actual note? It’s no harder than producing a declaration, right?

If they have it.

Maybe if this clause is removed and it was required to produce the actual blue ink note, the bill would have support.

MERS = MONEY LAUNDERING