S-3484.1  _______________________________________________

                         SENATE BILL 6621

          _______________________________________________

State of Washington   57th Legislature        2002 Regular Session

By Senators Gardner and Winsley

Read first time 01/23/2002.  Referred to Committee on Labor, Commerce & Financial Institutions.

Revising residential mortgage loan provisions.

    AN ACT Relating to residential mortgage loans; and adding a new section to chapter 31.04 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 31.04 RCW to read as follows:

    (1) A licensee making a residential mortgage loan to a resident of this state must have reasonable grounds for believing that the loan is suitable for the customer upon the basis of the facts, if any, disclosed by the customer as to his or her financial circumstances, needs, and objectives.

    (2) Before making a residential mortgage loan a licensee shall make reasonable efforts to obtain information concerning:

    (a) The customer's financial status;

    (b) The customer's tax status;

    (c) The customer's sophistication and expertise in mortgage financing;

    (d) The condition, appraised value, and equity of the property to be mortgaged;

    (e) The customer's capacity to meet the terms of any proposed loan; and

    (f) Other information used or considered to be reasonable by the licensee in making recommendations to the customer.

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