H-4098              _______________________________________________

                                                   HOUSE BILL NO. 1837

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Hargrove and B. Williams

Read first time 1/27/88 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to mortgage loans; and adding a new chapter to Title 31 RCW.

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

NEW SECTION. Sec. 1.     "Real property lender" means a state chartered bank, state chartered savings bank, state chartered savings and loan association, state chartered credit union, mortgage company, or other corporation, association, or partnership that makes loans secured by real property located in this state.

NEW SECTION. Sec. 2.     Every real property lender shall offer to provide to a prospective borrower a mortgage repayment plan that permits the borrower to make a required monthly mortgage loan payment in two installments within the month so that repayment will be accelerated and interest costs to the borrower will be reduced without increasing the required monthly mortgage payment.

NEW SECTION. Sec. 3.     Whenever it appears that any person or real property lender is in violation of any provision of this chapter, application may be made to the appropriate court for an order enjoining that person or entity from engaging in or continuing to engage in activity violative of this chapter, and upon a showing that such person or entity has engaged, or is about to engage in any such activity, a permanent or temporary injunction, restraining order, or other appropriate order may be issued by the court.

NEW SECTION. Sec. 4.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 5.     This chapter shall apply to loans offered or made on or after January 1, 1989.

NEW SECTION. Sec. 6.     Sections 1 through 5 of this act shall constitute a new chapter in Title 31 RCW.