WaMu Adopts New Broker Standard

Washington Mutual's wholesale unit will have new standard beginning Oct. 9 designed to ensure that borrowers fully understand their loan terms and the total compensation they will pay brokers.The company said that, as part of its new broker standard, WaMu will require evidence that the broker has made certain disclosures to the borrower early in the application process. These disclosures include key terms of the loan requested by the broker, such as the loan term and amount; whether the interest rate and mortgage payments may change; whether the borrower's pricing package carries a prepayment fee; the amount of all compensation the borrower will pay the broker for services, including broker points and administrative or processing fees; and whether the broker has requested a yield-spread premium. In addition, the company said a WaMu representative will attempt to call every borrower who is represented by a broker before closing to review the key loan terms directly with the customer. WaMu can be found online at http://www.wamu.com.