In a recent filing with the Securities and Exchange Commission, Washington Mutual Inc. disclosed that if it buys Great Western Financial it plans to sell $1 billion of home loans Great Western originated from 1989 to 1993.

Though the loans are still performing, Washington Mutual has decided they're too risky to keep, because the borrowers' equity has dropped below 5%. The Seattle thrift said it plans to sell these loans at a loss of about $100 million.

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