SB 5929
In CommitteeSenate
Deed of trust assignment/fee
Exempting assignments or substitutions of previously recorded deeds of trust from the document recording fee and the covenant homeownership program assessment.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill removes two fees—the $100 covenant homeownership program assessment and the $183 surcharge—from assignments or substitutions of previously recorded deeds of trust, such as when a loan is transferred between lenders or refinanced. It updates two existing laws to include this exemption while preserving all other fee collections and fund allocations.
- Exempts assignments or substitutions of previously recorded deeds of trust from the $100 covenant homeownership program assessment.
- Exempts assignments or substitutions of previously recorded deeds of trust from the $183 document recording surcharge.
- Amends RCW 36.22.185 to add this exemption to the list of documents not subject to the covenant homeownership assessment.
- Amends RCW 36.22.250 to add this exemption to the list of documents not subject to the $183 surcharge.
- Maintains all other existing fee structures and fund distributions for other recorded documents.
Who is affected
- County auditors — County auditors will no longer collect the $100 covenant homeownership program assessment or the $183 surcharge for assignments or substitutions of previously recorded deeds of trust, reducing their administrative burden and collection responsibilities for these specific documents.
- Lenders and title/real estate professionals — Lenders, title companies, and individuals who record deeds of trust (e.g., when refinancing or transferring a loan between institutions) will no longer pay the $100 covenant homeownership assessment or the $183 surcharge for these routine administrative actions.
- Homeowners — Homeowners who refinance or transfer their mortgage (e.g., switching lenders or consolidating loans) will save $283 ($100 + $183) per assignment or substitution, reducing costs associated with common real estate transactions.
- State and local governments — State and local governments will receive less revenue from document recording fees, potentially affecting funding for housing programs, though the bill specifies how remaining funds are allocated.
Pro/Con Analysis
Potential Benefits (2)
Directly reduces out-of-pocket costs for homeowners by $283 per refinancing or loan transfer—benefiting everyday homeowners who refinance (especially those with modest equity or lower incomes), reducing barriers to accessing better loan terms or consolidating debt.
HousingPeopleRef: Sec. 1(2)(f) and Sec. 2(1)(e)Reduces administrative and transactional costs for small lenders, title companies, and mortgage brokers—many of whom operate as sole proprietorships or micro-businesses—making routine loan servicing more affordable and supporting local real estate service providers.
Business & EmploymentPeopleRef: Sec. 1(2)(f) and Sec. 2(1)(e)
Potential Concerns (3)
Reduces county and state revenue by $283 per exemptioned transaction, which funds critical housing and homelessness programs—including emergency shelter, rental assistance, and permanent supportive housing—potentially weakening public investment in housing stability for low-income households.
HousingPeopleRef: Sec. 1(2)(f) and Sec. 2(1)(e)Reduces county-level funding allocations tied to the $183 surcharge, which counties rely on for local homeless housing plans and eligible housing activities serving extremely low- and very low-income households—disproportionately impacting rural and smaller counties with fewer alternative revenue sources.
Local GovernmentLean peopleRef: Sec. 2(3)(b)(ii) and (c); Sec. 2(4)(b); Sec. 2(5)(b)Reduces state-level deposits into the affordable housing for all account and landlord mitigation program account, which fund rent assistance and operating subsidies for housing for extremely low-income households and landlords accepting federal vouchers—reducing capacity to serve vulnerable renters.
HousingLean peopleRef: Sec. 2(2)(c)–(e)
Who Is Most Affected
Homeowners who refinance or transfer loans benefit directly from $283 savings per transaction—especially impactful for middle- and low-income households seeking to reduce monthly payments or consolidate debt.
County auditors face reduced revenue and administrative responsibilities for these documents, but the impact is mixed: less paperwork is beneficial, but reduced funding may strain local budgets already under pressure to support housing and homelessness services.
Lenders and title companies benefit from lower transaction costs on routine assignments/substitutions, but the effect is modest—most savings flow to consumers, and large national lenders benefit more than small local firms due to volume.
State and local governments lose recurring revenue streams that fund critical housing programs—including emergency shelter, rental assistance, and permanent supportive housing—potentially reducing service capacity for vulnerable populations.
Very low- and extremely low-income households relying on county and state housing programs (e.g., rental vouchers, emergency shelters, permanent supportive housing) may face reduced access or longer waitlists due to decreased program funding.