New standards for subprime mortgage lenders

The Washington State Department of Financial Institutions (DFI) took the first step toward adopting new standards that will apply to independent brokers and lenders who provide subprime adjustable-rate mortgage loans. DFI officials said they hope adoption of these standards will aid in more effectively protecting Washington consumers from issues that can arise when borrowers don't have adequate information to make informed decisions or are offered loans with substantial prepayment penalties.