WaMu Requiring Brokers to Disclose More in Loans

In the wake of the mortgage loan crisis, Washington Mutual Inc. is requiring its brokers to disclose lending terms, Bloomberg News reported Tuesday. WaMu brokers must provide evidence that that they revealed all aspects of the loan. This includes all aspects of interest rates, prepayment penalties and how payments may change. The requirements follow the defaults and foreclosures in subprime loans, those for people with weak credit, that have stymied the financial industry over the last several months. “This is a step in the right direction, and it’s very important this is done to avert future problems,” Allen Fishbein, director of housing and credit policy at the Consumer Federation of America, told Bloomberg News.