Washington Administrative Code
Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460)
Chapter 208-512 - Banks and trust companies
Section 208-512-420 - Subprime mortgage lending What does the guidance require of banks, savings banks and savings associations?

Universal Citation: WA Admin Code 208-512-420
Current through Register Vol. 24-18, September 15, 2024

The stated intent of the guidance is to help borrowers to better understand adjustable rate mortgage (ARM) risks. The guidance requires financial institutions to have policies and procedures that focus on the various risks of subprime/nontraditional mortgage lending. The guidance requires financial institutions to be aware of portfolio and risk management practices, to use appropriate underwriting standards and to abide by consumer protection principles. Financial institutions also need to maintain strong internal control systems. Many of the recommendations in the guidance are good business practices and may already be followed by financial institutions.

Not all of the elements of the guidance may be applicable to all banks, savings banks and savings associations, or to all other financial institutions. Banks, savings banks and savings associations must determine which elements are relevant to their operations, and incorporate only those subjects into their policies and procedures.

Statutory Authority: RCW 19.144.040 [19.144.030]. 08-22-070, § 208-512-420, filed 11/4/08, effective 12/5/08.

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