January 9, 2026

The Top Line

WBA education is starting the year strong, with the largest UBP class to-date having kicked off yesterday featuring 86 attendees from 23 states. Another year of the Executive Development program begins Monday with 28 students from all around the state, and a couple from California. Keep up to date with our education offerings at all times by bookmarking this page: wabankers.com/calendar.  

The Washington Legislature returns next week for a 60-day session, and state budgeting will be a top priority in Olympia as lawmakers review priorities for the year ahead. Washington’s overall state spending has more than doubled since the 2013-15 budget, rising from about $80 billion to an estimated $173 billion in the 2025-27 cycle, a 116 percent increase over the past decade. With spending growing far faster than inflation and population growth, discussions about sustainable revenue and responsible fiscal planning will undoubtedly lead to intense debates as the session unfolds. 

Your Association has already been engaged on multiple fronts, with our Director of Public Affairs leading our professional lobbyists and public relations firm in working on issues as they’ve emerged in real-time conversations with legislators. Here are the top areas we need you to be aware of – we’ll be putting the call out during session for bankers to speak to their legislators on these topics: 

  • Taxes: It’s likely to be another rough year, and the Governor’s budget includes elements that raise constitutional questions. We’ll know more in the next couple of weeks – stand ready on this one, cause the need for your voice could emerge quickly and urgently! 

  • First Mortgage Interest Deduction; while we secured a veto from Gov. Ferguson during the 2025 session, this issue has come back with an unusual twist (the funds generated in HB 2089 would go into the state Wildfire Mitigation Fund…which is certainly a choice). It’s too soon to say for sure which way this goes, but it’s a high priority for your association. 

  • Housing Finance Commission: There’s been rumbling that the HFC is modifying its charter in a way that would appear to allow direct-to-consumer lending, which wouldn’t be constitutional in Washington. We think this is likely to be a language cleanup situation, but it’s worth mentioning that we’re working on it. 

  • Mortgage Escrow Interest: A proposal targeting fintech mortgage services (e.g., Rocket, Better) and banks. This is another likely language cleanup rather than a full court press, and we’re working on it. 

 

As the session begins, thank you for the work you do every day to serve your customers and strengthen your communities. Your engagement, insight, and willingness to speak up when it matters are what make this Association effective, and we look forward to navigating the months ahead together.