- Consumer Mood Improves, But Anxiety Over Finances
- Jobless Claims Below 500,000, Durable Orders Slip
- AIG Board OKs CEO Pay; Benmosche Agrees to Stay
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Obama Going to Copenhagen Climate Summit
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Americans Ditch Planes for Trains this Thanksgiving
- Oil Price to Average $75.40 in 2010: Poll
- FDIC's Bair Cautions on Risks in Bank Break-Up Plan
- Topless Business Is Taking Off
- 3 Software Stock Picks from Lazard's Senior Analyst
- Schork Oil Outlook: Gas Bulls Pinning Hopes on Mother Nature
- Toyota Makes Recall Fix And So Long Saab
- Investors Bet on a New Year's Rally For eBay
- Why You Should Play the Reflation Trade: Stock Picker
- Citi Mortgage Reveals What Treasury Won't
- S&P to Hit 1,200 by Year-End: Chief Investor
- Amended Berkshire Hathaway Filing Indicates No Secret Stock Stakes at End of Q3
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Ritz-Carlton ?Struggling? in the US: President
- Oil Price to Average $75.40 in 2010: Poll
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Obama Reiterates Commitment to Boost US-India Ties
- NBA D-League On The Rise
- Americans Ditch Planes for Trains this Thanksgiving
- Jobless Claims Below 500,000, Durable Orders Slip
- Citi Mortgage Reveals What Treasury Won't
Text Size 
Washington Mutual, the largest U.S. savings and loan, Monday said it is putting in place new standards to be used by mortgage brokers with which it does business.
WaMu [WM
Loading...
()
] said the new standards are intended to help borrowers fully understand the terms of their loans and the total compensation being paid to brokers.
The initiative comes after U.S. home loans in foreclosure rose to a record high in the second quarter, according to the Mortgage Bankers Association, marking the third straight quarter in which the foreclosure rate rose to a record-setting level.
Many homeowners have stumbled on their adjustable-rate mortgages, prompting concerns that consumers are not adequately informed about mortgage loan terms and fees.
As part of the new broker standard, WaMu said it will require evidence that brokers have made disclosures to borrowers early in the mortgage application process.
A WaMu representative will also attempt to call every borrower working with a broker prior to a loan closing to review terms directly with the borrower, it said.
The thrift last month cut 1,000 jobs in an effort to cope with slumping housing demand. It is merging its subprime lending business, which focuses on borrowers with weak credit, into its prime business, eliminating the separate sales force.
Shares of WaMu were down 2 cents at $35.39 in early trading on the New York Stock Exchange.
Print
Email
- Here's how key provisions of the health care reform bill would impact your insurance and how you'll pay for it.
- Playboy will outsource its publishing operations in a bid to become profitable again.
- Remember when auto shows were major events where new models could generate buzz?
- After nine years the NBA’s minor league equivalent is finally coming into its own.
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
Data is a real-time snapshot *Data is delayed at least 15 minutes