December 22, 2007

Washington Mutual (finally) under SEC investigation for its role in inflated and bogus home appraisals


Cool.

But what the f*ck took so long?

Wasn't it OBVIOUS that corrupt toxic lenders like WaMu, Countrywide, IndyMac and First Fed were systematically and blatantly encouraging and participating in rampant illegal mortgage fraud?

It sure was to HP'ers.

(Note - I'm short WaMu and don't see any way this pig survives, especially when they're found guilty of mortgage fraud and have to buy back all the worthless crap paper they issued. Tilt. And if you have money in a WaMu account, GET IT OUT NOW!!!)

WaMu Says Cooperating with SEC on Home Appraisals

NEW YORK (Reuters) - Washington Mutual said on Thursday it is cooperating with a U.S. Securities and Exchange Commission inquiry into the handling and reporting of mortgage loans that may have been based on inflated home appraisals.

The SEC is also looking into whether the company, one of the largest U.S. mortgage lenders, properly accounted for its loans in financial disclosures to investors, according to the Journal, which cited people familiar with the situation.

23 comments:

Anonymous said...

Maybe there is a God after all, about time!

SEE-CNNfn said...

The rush to raise capital comes amid constricting access to money as more banks and other lenders face heavy losses related to subprime mortgages.

Chrysler's owner, Cerberus Capital Management, is now facing serious subprime-related losses from GMAC Financial Services, which it bought from General Motors (GM, Fortune 500) for $12 billion, and is also trying to walk away from a now pricey deal to buy United Rentals Inc.

Anonymous said...

I keep telling my mom to get her money out of Wash Mutual. But, like the folks at a holiday party I attended last night, when I speak about the mortgage crises, they look at me funny.

Everyone has heard about the subprime mess, but few really understand the scope of the problem.

I feel like a crazy prophet, screaming in the woods.

Alex3191 said...

We still have like five (5) years to spend together, HPers ..
"and the truth will set you free"

bens's butt boy said...

The Fed is dribbling money to the WAMUs of the world so they can stay afloat a while longer and basically telling them to go find a foreign investor.

Look for a "strategic" investment early next year from some Asian source to bail out their sorry asses. Of course the full details of the deal will never be disclosed.

SeattleMoose said...

Last year I was at a Xmas party where about a dozen WAMUers were the ones boasting about their RE wealth, commisions, and job security. One guy bragged that he "owned" 5 properties and he didn't have to put down a penny to do it. That was the one that stuck in my mind because when I mentioned I rented he gave me a very condescending look.

Well, last night I was at the same Xmas party and only about 3 of those 12 were present and they were very low key. I asked about the guy with 5 properties..already has been told his job is on the chopping block.

What a difference a year makes...I'll keep renting and biding my time.

Anonymous said...

WaMu is a $2 stock waiting to happen!!!!!!!

Anonymous said...

What kind of Einsteins are running Wamu?

Collaborating to inflate the appraisals on THEIR OWN loans?

That's mortgage self-defraudment!

W T F ?

Did they ever realize that getting a loan on bad collateral is the entire point of mortgage fraud?

The BANK is the victim: big loan, little property, no payments.

It takes Casey-level delusion to think it's all good.

At least Tangelo knew the score enough to dump his own stock.

Shakster said...

Next up-The WaMu pony from Washington.The crowd is really up for this one Al.The Countrywide poodle has some competition now.
Oh by the way guys-keep an eye peeled out for large hunks of American natural resource,and infrustructure giveaways to the Chinese,India,and other countries worldwide.Wall Street ,The FED,and Was-ington will never face up.They will pawn off everyone elses stuff to keep the Casino running,as well as murder a few million Iraqis,Iranians,and so on.

Nolaguy said...

I moved my money out of WAMU A few months ago. A few folks at CR thought I was irrational. Regardless, I've been sleeping much better ever since. Only time will tell...

keith said...

FYI Countrywide is offering 5.5% on 3-month CD's - SIGNIFICANTLY higher than any other bank.

And when they fail, the taxpayer has to pay.

It's sick. Someone's gotta stop 'em.

Schumer? Dodd? Clinton?

We're f'd.

Shakster said...

Alex3191 said...
We still have like five (5) years to spend together, HPers ..
"and the truth will set you free"
----------------------------------
The Truth is useless around here.It also gets in the way of progress.At the party when someone is called "Liar Liar Pants on Fire",the women bust out the make-up,perfume,and undo an extra button on their blowses.

Anonymous said...


What kind of Einsteins are running Wamu?

Collaborating to inflate the appraisals on THEIR OWN loans?

That's mortgage self-defraudment!


These loans were agency loans sold and are backed by the taxpayers. The reason for the investigation is taht these toxic loans were dumped on Fannie/Freddie aka taxpayers. They did not inflate appraisals on non-conforming loans they kept or securitized.

Anonymous said...

Hey, Keith. Just curious how much Wells is paying you to not mention their name at all when discussing this whole thing. Are you so naive as to think they vaulted themselves to #2 by simply doing creampuff GSE loans? Have you checked the 2nd and 3rd Qtr leaders in subprime lending in '07? Probably not.

keith said...

I'm short Wells too - I keep forgetting to throw them in the cesspool - thanks for reminding me

Only thing with Wells is they didn't keep the crap - they sold it as fast as they wrote it. And they have strong retail banking.

But if the marks who bought the crap want someone to sue, or demand that Wells buy the crap back since it was originated in a sea of fraud, then WFC is gonna get slaughtered

Time will tell...

What too do? said...

When I closed my online WaMu accounts last summer, a gal at their 800 number asked me for what reason. I told her the stability of the bank was my concern. We talked quite a while as she was doing her job defending the bank. Towards the end of our conversation she opened up and confessed her money was at ING not WaMu. She cited the same reasons I had given for not banking with them.

Anonymous said...

I keep telling my mom to get her money out of Wash Mutual. But, like the folks at a holiday party I attended last night, when I speak about the mortgage crises, they look at me funny.... I feel like a crazy prophet, screaming in the woods.
_________________________________

I've been having the same problem; everybody thinks I'm nuts. I just paid off my mortgage with funds from my WaMu checking account, thus making use of my money before WaMu goes into some kind of future Chapter 13 "reorganization."

RP said...

I work for a smaller regional bank with a Federal Charter. We specialize primarily in commercial loans, but our main branch never did any Subprime or Stated loans. We have a nasty habit of wanting borrowers to qualify for the money we lend, and the audacity to expect their tax returns to qualify them.

I can't tell you how happy I am to work somewhere with common sense. Did we lose out on lots of easy money during the boom - naturally, but the money we make is honest.

Even today some brokers call me and ask for a 100% LTV stated commercial loan (quick disclaimer: there are some honest and fantastic mortgage brokers out there). When I tell them we don't do stated deals, they act shocked and ask why not. My typical response is No we don't do stated loans, and conversely we also don't have billion dollar writedowns every quarter.

Some people will never get it.

Anonymous said...

WaMu CEO Kerry Killinger as recently as this summer claimed that they had very little exposure to bad loans. SOX anyone?

Anonymous said...

I am Stupid Too?

I've been having the same problem; everybody thinks I'm nuts. I just paid off my mortgage with funds from my WaMu checking account, thus making use of my money before WaMu goes into some kind of future Chapter 13 "reorganization."

December 22, 2007 8:33 PM

I'm not sure. People think I am nuts too. Maybe I am. Paid my Bay Area house off this year with <$100K cash in WaMu checking. Now, minimum overhead. Just taxes and insurance.

Just tonight, bought (took over loan, paid cash $28K for 2007 loaded Corvette, (Z51, MN6, Nav, etc)orig cost $53K, plus tax and Lic approx + 9.4%. Of course, I owe tax and Lic to state on the $28K. call it 3 grand, BFD.

So, I got 9 mo old car with 11K miles $51K car for $31K. So What, you say, it's a Chevy and they mak them every day, I agree with you. Try and find a white C6...

Hmm. Sucker that I am, this 31 YO (former Motrgage BROKEer, 2 kids one on way, now unemployed/able) offered me his $1.6M McMansion in low Hills for $778K CASH. He wants to 'Get Out Fast'. His 'equity' $600K...

I told him, based on title search by my people, I would give him 50% of his equity in cash and would not subordinate any of his other 'loans' (3 private 'investors') for free and clear title/grant deed and close immediately, based on my findings.

He was so blown away and excited he called movers from his cell phone to get a quote on moving...

What do you 'think'? Falling knife or deal-of-the-century?

Happily enlarging my carbon footprint (F*ck Al Gore and all Prius drivers)and running the LS7 for all it is worth (on warranty) in Silicon Valley.

The Sucker with the Paid Off Home (and maybe the house in the Hills too).

eric in vegas said...

rp,

banks may have made billions on sub-prime, but there going to end up giving all that money back and more.

Edgar said...

Chris Cox, the SEC, and every other Bushco team member is the enemy of this country. They are traitors and thieves.

corvinus said...

What... are you saying that WaMu is upside down??