Amends the "meet and confer" requirement to, among other things, repeal the expiration date, make it applicable to all deeds of trust for owner-occupied residential real property, and expand the time period in which the borrower can meet with the beneficiary. Establishes foreclosure mediation for borrowers referred to mediation by housing counselors or attorneys. Require the department to include additional information in its annual report regarding the mediation program. Community association beneficiaries are not subject to the mediation requirements or the $250 Notice of Default fee under this act. Financial institutions who are not subject to the mediation requirements are to report their exemption to the department by January 31 (vs. January 10) annually. Housing counselors are to be approved by HUD or the Washington State Housing Finance Commission.