| Passed by the Senate March 10, 2008 YEAS 35 BRAD OWEN ________________________________________ President of the Senate Passed by the House March 4, 2008 YEAS 93 FRANK CHOPP ________________________________________ Speaker of the House of Representatives | I, Thomas Hoemann, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 6381 as passed by the Senate and the House of Representatives on the dates hereon set forth. THOMAS HOEMANN ________________________________________ Secretary | |
| Approved March 21, 2008, 1:49 p.m. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington | March 24, 2008 Secretary of State State of Washington |
| State of Washington | 60th Legislature | 2008 Regular Session |
Read first time 01/16/08. Referred to Committee on Consumer Protection & Housing.
AN ACT Relating to fiduciary duties of mortgage brokers; and adding a new section to chapter 19.146 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 19.146 RCW
to read as follows:
(1) A mortgage broker has a fiduciary relationship with the
borrower. For the purposes of this section, the fiduciary duty means
that the mortgage broker has the following duties:
(a) A mortgage broker must act in the borrower's best interest and
in the utmost good faith toward the borrower, and shall disclose any
and all interests to the borrower including, but not limited to,
interests that may lie with the lender that are used to facilitate a
borrower's request. A mortgage broker shall not accept, provide, or
charge any undisclosed compensation or realize any undisclosed
remuneration that inures to the benefit of the mortgage broker on an
expenditure made for the borrower;
(b) A mortgage broker must carry out all lawful instructions
provided by the borrower;
(c) A mortgage broker must disclose to the borrower all material
facts of which the mortgage broker has knowledge that might reasonably
affect the borrower's rights, interests, or ability to receive the
borrower's intended benefit from the residential mortgage loan;
(d) A mortgage broker must use reasonable care in performing
duties; and
(e) A mortgage broker must provide an accounting to the borrower
for all money and property received from the borrower.
(2) A mortgage broker may contract for or collect a fee for
services rendered if the fee is disclosed to the borrower in advance of
the provision of those services.
(3) The fiduciary duty in this section does not require a mortgage
broker to offer or obtain access to loan products and services other
than those that are available to the mortgage broker at the time of the
transaction.
(4) The director must adopt rules to implement this section.