Quote:
Originally Posted by island911
tabs, why do you think WAMU is in that much trouble? --From my experience they have been one of the more responsible lenders.
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WAMU will have a Mushroom cloud over their HQ here shortly with all those Pay Option Arms they own. Someone on the inside said as much as 50% of their portfolio were those things.
Then, there is the acquisition of their subprime division "Long Beach Mortgage Co" but they turned that company into a hoorhouse for subprime loans.
They used to rubber stamp anything- I sent all my not a chance in hell loans there.
Appraisal looked like it was 10% too high? - Exception granted (big one)
Payment too high for approval - Exception granted (big one)
They basically bought anything as long as the property was OK and you weren't more that a little off of meeting the requirements.