FINAL BILL REPORT

                           SSB 6571

                          C 295 L 94

                      SYNOPSIS AS ENACTED

Brief Description:  Disclosing information on residential real estate.

SPONSORS: Senate Committee on Labor & Commerce (originally sponsored by Senators Moore, Wojahn, Gaspard, Franklin, Prentice and Winsley)

SENATE COMMITTEE ON LABOR & COMMERCE

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

BACKGROUND:

Before the purchase of a residence, various reports are generated regarding the value and condition of a residence.  These reports include appraisals, inspections, and may include other documentation.  Often a residential mortgage lender obtains copies of these reports, before approving a loan, in order to assess the value and condition of the residence being financed.

Concerns have been expressed that lenders should have a duty to share appraisals, inspections, and other pertinent documentation with purchasers of a residence prior to the closing of a residential mortgage loan.

SUMMARY:

Prior to closing, a lender must provide the borrower with true and complete copies of the documents that the lender relied upon when evaluating the value of the residence to be financed.  The borrower may waive the requirement to have these documents prior to closing.

VOTES ON FINAL PASSAGE:

Senate    41   6

House     98   0    (House amended)

Senate    44   2    (Senate concurred)

EFFECTIVE:June 9, 1994