wa-law.org > bill > 2025-26 > HB 2268 > Original Bill
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
"Mortgage loan servicer" means an entity who has an agreement with a lender or investor of a residential mortgage loan to collect or receive payments on existing obligations due and owing to the lender or investor, including payments of principal, interest, escrow amounts, and other amounts due; collecting fees due to the servicer; or working with the borrower and the licensed lender or servicer to collect data and make decisions necessary to modify certain terms of those obligations either temporarily or permanently.
"Residential mortgage loan" means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other consensual security interest on a dwelling, as defined in the truth in lending act, or residential real estate upon which is constructed or intended to be constructed a dwelling.
Beginning January 1, 2027, a mortgage loan servicer that collects funds in advance for payment of taxes and insurance held in an escrow account for a residential mortgage loan secured by real property of one to four units located in the state shall pay interest to the borrower at a rate of at least two percent simple interest per annum.
A mortgage loan servicer subject to this section is prohibited from imposing any fee or charge in connection with the maintenance or disbursement of money received and held in an escrow account that will result in an interest rate of less than that required in subsection (1) of this section.
This section only applies to residential mortgage loans executed on or after January 1, 2027.