Mortgage Disclosure Bill Passes Next Hurdle

Columbian (WA) (02/22/08); Durbin, Kathie
In Washington state, the House Committee on Insurance, Financial Services and Consumer Protection this week unanimously passed Senate Bill 6728, which incorporates nearly two dozen of the recommendations of Gov. Chris Gregoire's Task Force for Homeowner Security. Most notably, it calls for the creation of a disclosure form that would spell out all costs associated with a mortgage loan and reveal whether it contains balloon payments, early payment penalties or future adjustments to the interest rate. In addition to making it a crime for a mortgage broker or borrower to knowingly use deceptive practices to obtain home financing, the measure seeks to prohibit brokers and consumer loan companies from steering customers to mortgages they clearly are unable to afford. A measure that provides $1.5 million to promote financial literacy among home buyers has already been signed into law by Gregoire after passing both the House and Senate.