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HB2268 • 2026

Mortgage escrow accounts

Concerning residential mortgage loan escrow accounts.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Bernbaum, Representative Reed, Representative Ryu, Representative Taylor, Representative Berg, Representative Parshley, Representative Macri, Representative Fosse, Representative Hill
Last action
2026-01-12
Official status
H ConsPro&Bus
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Mortgage escrow accounts

Mortgage escrow accounts

What This Bill Does

  • Mortgage escrow accounts

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-12 House

    First reading, referred to Consumer Protection & Business.

Official Summary Text

Mortgage escrow accounts

Current Bill Text

Read the full stored bill text 
AN ACT Relating to residential mortgage loan escrow accounts; and 1
adding a new chapter to Title 61 RCW. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
NEW SECTION. Sec. 1. The definitions in this section apply 4
throughout this chapter unless the context clearly requires 5
otherwise.6
(1) "Mortgage loan servicer" means an entity who has an agreement 7
with a lender or investor of a residential mortgage loan to collect 8
or receive payments on existing obligations due and owing to the 9
lender or investor, including payments of principal, interest, escrow 10
amounts, and other amounts due; collecting fees due to the servicer; 11
or working with the borrower and the licensed lender or servicer to 12
collect data and make decisions necessary to modify certain terms of 13
those obligations either temporarily or permanently.14
(2) "Residential mortgage loan" means any loan primarily for 15
personal, family, or household use that is secured by a mortgage, 16
deed of trust, or other consensual security interest on a dwelling, 17
as defined in the truth in lending act, or residential real estate 18
upon which is constructed or intended to be constructed a dwelling.19
H-2590.1
HOUSE BILL 2268
State of Washington 69th Legislature 2026 Regular Session
By Representatives Bernbaum, Reed, Ryu, Taylor, Berg, Parshley,
Macri, Fosse, and Hill
Prefiled 01/06/26. Read first time 01/12/26. Referred to Committee
on Consumer Protection & Business.
p. 1 HB 2268
NEW SECTION. Sec. 2. (1) Beginning January 1, 2027, a mortgage 1
loan servicer that collects funds in advance for payment of taxes and 2
insurance held in an escrow account for a residential mortgage loan 3
secured by real property of one to four units located in the state 4
shall pay interest to the borrower at a rate of at least two percent 5
simple interest per annum.6
(2) A mortgage loan servicer subject to this section is 7
prohibited from imposing any fee or charge in connection with the 8
maintenance or disbursement of money received and held in an escrow 9
account that will result in an interest rate of less than that 10
required in subsection (1) of this section. 11
(3) This section only applies to residential mortgage loans 12
executed on or after January 1, 2027. 13
NEW SECTION. Sec. 3. Sections 1 and 2 of this act constitute a 14
new chapter in Title 61 RCW.15
--- END ---
p. 2 HB 2268