Learn about the new Foreclosure Prevention Fee at an upcoming webinar
- Marla Beaver
- 19 hours ago
- 2 min read
New fee applies to anyone making a residential mortgage loan
A new $80 fee on most residential mortgage loans provides funding for the Foreclosure Fairness Program.
Learn more about this new fee at the webinar:
9-10 a.m. Aug. 13
Registration is required. Register on Zoom.
The fee applies to people who make residential mortgage loans, including non-depository lenders, all state and federally chartered depository institutions, providers of down payment assistance and housing developers that provide secondary loans to homebuyers (including Community Reinvestment Plan and Capital Programs award recipients). The loans are collected by the closing agent.
Anyone making a residential mortgage loan must ensure that the Foreclosure Prevention Fee is disclosed on the loan estimate, closing disclosure, and any other disclosures required by state and federal law. The fee does not apply to reverse mortgages for people over 61 years old). The fee was established in Sect. 8(1) of Chapter 393, Laws of 2025.
Frequently asked questions
What type of loans does the Foreclosure Prevention Fee apply to?
Closing agents must collect the Foreclosure Prevention Fee on all residential mortgage loans originated for personal, family, or household use that are secured by a mortgage, deed of trust, or other consensual security interest on a dwelling or residential real estate upon which is constructed or intended to be constructed a dwelling.
Residential mortgage loans include but are not limited to: acquisition, home equity, adjustable rate, FHA, VA, USDA, state and municipal special programs, Conventional, Construction, special purpose credit programs, and others.
Lien position is not a factor in determining applicability of the Foreclosure Prevention Fee.
What type of properties require the Foreclosure Prevention Fee?
Closing agents must collect the Foreclosure Prevention Fee on all residential mortgage loans originated for “personal, family, or household use that are secured by a mortgage, deed of trust, or other consensual security interest on a dwelling, as defined in the Truth In Lending Act, or residential real estate upon which is constructed or intended to be constructed a dwelling.”
Pursuant to the Truth in Lending Act, “ ‘dwelling’ means a residential structure that contains one to four units, whether or not that structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobile home, and trailer, if it is used as a residence.”
Additional resources:
Chapter 393, Laws of 2025
Commerce Guidance
Disclosure
Frequently Asked Questions
For more information
Call: 360-725-3040
