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Old 12-30-2008, 07:56 PM
Location: Norfolk, VA
1,036 posts, read 3,843,976 times
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Interesting stories coming out about what was going on in WAMU. I knew they had some loose guidelines for Option ARMs and sub-prime loans. A lot of their growth the last few years was driven by aquisitions and expansion into risky products (same as Wachovia and many others I guess).

But the new revelations on underwriting, policies and referral fees is shocking.

American Dream, The WaMu Way

Not sure how much of it is true, but considering a few other articles about referral fees and underwriting policies it makes you wonder. Its probably going to be a few years before we know how crazy banks got. To think, we are bailing them out for such reckless behavior with very few questions asked....
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Old 12-31-2008, 07:14 AM
28,460 posts, read 80,645,175 times
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I know some former WaMu loan officers from California -- for the most part their offices did HUM with activity. When you are processing the volume of loans that they were the odds of bad apps get rejected almost naturally falls: "Keep the line moving."

If some sharp lawyers try to build a case that the lax lending standards 'tricked' borrowers into loans they could not afford and subsequently led them to lose their homes I think equally sharp lawyers cold argue that the LENDER was hurt even more deeply.

Best solution will be to dig a huge hole and bury all this mess. Look for Federal Legislation to do that...
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