S-4911.1  _______________________________________________

                    SUBSTITUTE SENATE BILL 6571

          _______________________________________________

State of Washington      53rd Legislature     1994 Regular Session

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

Read first time 02/04/94.

Disclosing information on residential real estate.

    AN ACT Relating to disclosing information prior to a residential mortgage loan closing; and adding a new chapter to Title 19 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

    (1) "Lender" means any person doing business under the laws of this state or the United States relating to banks, savings banks, trust companies, savings and loan associations, credit unions, consumer loan companies, insurance companies, real estate investment trusts as defined in 26 U.S.C. Sec. 856 and the affiliates, subsidiaries, and service corporations thereof, and all other persons who make residential mortgage loans.

    (2) "Residential mortgage loan" means any loan used for the purchase of a single-family dwelling or multiple family dwelling of four or less units secured by a mortgage or deed of trust on the residential real estate.

NEW SECTION. Sec. 2.  A lender shall provide to the borrower at least five days prior to the closing of a residential mortgage loan, true and complete copies of all appraisals, inspections, or any other reports concerning the condition or value of the real property being financed by the lender.  A borrower may waive in writing the lender's duty to provide the appraisals, inspections, or other reports five days prior to closing.  This written waiver may not be construed to in any way limit the lender's duty to provide the information to the borrower at a later date.  This section shall only apply to purchase money residential mortgage loans.

NEW SECTION. Sec. 3.  Sections 1 and 2 of this act shall constitute a new chapter in Title 19 RCW.

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