A Washington disclosure in 2026 itemizes third-party costs and says nothing about how that money is held. What must the disclosure say about holding third-party funds and refunding any remainder?
Correct Answer
D) Deficient: it states the money is held in trust and any excess refunded
The disclosure must contain a statement that moneys paid by the borrower for third-party provider services are held in a trust account and that any moneys remaining after payment to third-party providers will be refunded. Other choices: the statute setting the rule is why the borrower is told of it; naming the bank is not the required statement; and no account number is disclosed. Source: RCW 19.146.030(2)(f)
Why This Is the Correct Answer
The disclosure must contain a statement that moneys paid by the borrower for third-party provider services are held in a trust account and that any moneys remaining after payment to third-party providers will be refunded. Other choices: the statute setting the rule is why the borrower is told of it; naming the bank is not the required statement; and no account number is disclosed. Source: RCW 19.146.030(2)(f)
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