Report: WaMu Rewarded Employees Who Pushed Dangerous Mortgages

Report: WaMu rewarded employees who pushed dangerous mortgages

By Kimberly Miller
Palm Beach Post Staff Writer

In the fall of 2006, Washington Mutual was so determined to push its riskiest mortgages on customers that it created a football-themed employee bonus “blitz,” offering “touchdown” incentives for every sale of a pick-a-payment loan.

A non-prime loan was a “field goal” in the game to win a $1,000 gift card at the expense of home buyers who were purposefully steered away from fixed-rate, 30-year mortgages.

The campaign to sell high-risk loans, which contributed to the 2008 demise of the nation’s sixth-largest bank, is outlined in a 650-page report released last week by the U.S. Senate’s Permanent Subcommittee on Investigations.

Florida is mentioned repeatedly in the report. Washington Mutual’s loan sales were concentrated in the state, which ultimately suffered above-average home value depreciation.

Check out the rest here…


25 Responses to “Report: WaMu Rewarded Employees Who Pushed Dangerous Mortgages”
  1. Sui the Gator says:

    If you think Wamu was bad, their “sub prime” arm not mentioned here LONG BEACH MORTGAGE, was the worst ever. I underwrote at Long Beach Mortgage, they gave the underwriters bonuses!!! However, they switched me to the “superteam”, which was really the audit department… Didn’t want me in the team environment, I declined too many loans.. HA… But my bonuses were better on the superteam. There I could decline them and be patted on the back! This was when I was in California.. There have been several of the Long Beach employees that were arrested for fraud… you can check that out on

    • l vent says:

      This is beautiful. I give the people in the U.K. credit. They have a real fighting spirit when it comes to going after their Government. This will be coming to America very soon if the ongoing financial terrorism by these Foreign Multinational Criminals continues to be allowed by our own U.S GOVERNMENT, it won’t be long. The U.S. GOVERNMENT is allowing these foreigners to bankrupt their own country and destroy us because they are soo freaking corrupted? They are making a laughing stock of everything the AMERICAN PEOPLE BUILT. TIME TO SEND ALL OF THE DEMORATS AND REPUBLICONS PACKING. THEY ARE A SHAM AND FRAUD. THEY ARE A COMPLETELY CORRUPT AND TREASONIST BUNCH OF TOOLS. OUR FOREFATHERS ARE SURELY ROLLING OVER IN THEIR GRAVES.

      • I vent….This is just the start and the people will not stop…here in the UK and America….THE TRUTH WILL PREVAIL….The courts in the UK are corrupted as in our own country….it is a pattern…. as we found this to be nothing but corrupt during the vaccine court held by both countries…’s called..’ Follow the leader ‘….Did you get that……’ Follow the leader ‘….(referring to Phelps)…. WE ALL HAVE A BIG JOB AHEAD OF US, BUT WE MUST STAND AS UNITED…OFF WITH THEIR HEADS. The blame is our own government, now and in the past….we believed their lies…those days are over ….done. to kind of a word to explain this whole mess…frig’en TREASONIST… they need not worry about their pensions and paid health insurance for life…..that needs to be ended…taken away. Everything lost.. Just as they sat back and watched millions suffer in this country, The pain made us stronger…it made us smarter… and their greed and crimes tripped them to fall. REMEMBER….TO CATCH A CROOK YOU MUST THINK LIKE A CROOK…….THAT IS A SURE WAY TO CATCH THEM.

      • l vent says:

        Yes Marilyn, you are right. My grandparents grew up during the last Great Depression. They are gone now but they always had a very strong distrust for the Government and buying anything on credit or keeping much money in the banks. They had money hidden everywhere around the house and rarely bought anything on credit. I don’t ever remember seeing them use a credit card. They never, ever forgot what could happen.

    • l vent says:

      The treason and corruption is out of control in America too. What the man said in the video is exactly what we are all talking about at this website. We the homeowners, who are the victims of the enormous PONZI SCHEME HEIST are being victimized by CORRUPT JUDGES who are looking out for their own greedy self interest and aiding and abetting the very same criminals that robbed us. We The People, the victims should NOT have to walk into a courtroom in fear of a JUDGE who acts more like a ROMAN DICTATOR than an impartial judge. THE JUDGES SHOULD DO THEIR JOB AND RULE IN ACCORDANCE WITH THE LAW IF THERE IS NO LEGAL CONTRACT OR A BREACH OF CONTRACTor if there is clear evididence of FRAUD being used to cover up more fraud. I’ll bet Mat Weidner really enjoyed this video. THE CRIMINALS ARE ONLY POWERFUL WHEN GOOD PEOPLE DO NOTHING. GET UP, STAND UP, STAND UP FOR YOUR RIGHTS AMERICA!

      • Equity Free says:

        I want to do the same thing here , say Fl’s 15 or on Fl’s west coast, I’ll support it . Enough is enough.
        They the judges are breaking the law,we the people are witness to it and need to stop it .
        Marley’s song says it all ! Get Up Stand Up Stand Up for Your Rights !
        I’ll support any one of the courageous defense lawyers who have been taking on these crooks daily .
        Arrest Em !

  2. CoCo says:

    I was sold a bad subprime loan in 2005. I refinanced my home and took out 35k. It cost me $13,500.00 to get the refi and my rate was 1.5% higher than what they told me it would be. I had to have the money , so I signed. I became a mortgage broker because of that experience. I was bound and determined that I would help people. The mortgage company I worked for pushed pick-a-pay loans. I would not do them. Loan officers were making 60k-80k perr month!!! I would imagine that most of those people lost their homes to foreclosure. A pick-a-pay loan offers 4 avenues to pay-1. 30 year fixed rate, 2. 15 year fixed rate 3. interest only 4. an interest rate so low that you can qualify for a dream home. Problem with number 4 is that after 2 years, t the payments were 5-6 times what they had been paying.All of the interest that they should have been paying-BUT DID NOT-is added to the loan and the real payments start. That was probably never explained to the homeowners. I saw loan officers making 18-25k on one loan. Shameful. The Department of Finance is not forgiving. You can contact the Office of Economic Fraud in Miami and they will investigate any company or individual as the records have to be kept on file for five years. The company can be out of business or under a new name-makes no difference.Once they start investigating, a pattern opens up and they see that it was not a few bad loans but probably 80-90%. Most of the times, the clients didn’t know what they signing. So, yes. People need to stop blaming the homeowners and put these unscrupulous lenders and their employees and former employees in prison for fraud. All of it can be proven so just pick up the phone and tell the authorities your little story and soon there will be enough little stories to gain some real attention. And, don’t forget about YIELD SPREAD-hidden from the consumer but the higher interest rate the lender got on the loan, the more money paid to the mortgage broker. Ouch.

  3. Equity Free says:

    To all those in the know this is nothing new, but to the average John Q this story is front page HEADLINE
    news . This story like the 60 minutes story is what we need more of , if we are going to stop these foreclosures.
    The banks are winning last I checked 2 million to 500 .
    Send a THANK YOU for the front page story, and you want more stories like this, and you had no Idea that they were rewarded for selling these known toxic (defective) mortgages . . Call, Fax, e-mail this reporter and the Post.
    The public has no clue of the fraud . Educate em ! .

  4. Florida Defaulter - Because There Was No Other Choice says:

    When I read articles like these I hope the people who normally call people in foreclosure “deadbeat home owners” will begin to understand what really happened. Everyone is SO quick to blame the homeowners, instead of the bankers, wagging their judgmental fingers at them, claiming “they got into loans they couldn’t afford – it’s all their fault”.

    Hopefully they’ll begin to realize there were millions of people who got loans they could easily afford under the current terms of those loans, but later,when the rates when up, and they wanted to refinance like the original loan officers had advised them they could when home values went up, they weren’t able to because by then the market had imploded and banks stopped lending. The banks didn’t care, they’d made billions off securitizing loans and selling them off to investors.

    We didn’t have a loan we couldn’t afford, we had no problem making the payment, but we needed to sell our nice 2,700 square foot home on the Space Coast and we couldn’t. Because of what the bankers did our house which was once worth $400,000, was drowning underwater and could only be listed realistically for $250,000. Now it’s valued at $160,000.


    The problem is that the average american citizen is ignorant when it comes to understanding anything about the banking system, how mortgages are originated, etc. They’re stilling operating out of the old school which told them, you go to the bank, tell them how much you make, show them the house you want to buy or build, they decide if your credit worthy, and then they loan you the money FROM THEIR BANK. It just doesn’t happen like that anymore, but ignorant people are stuck in that mode.

    People really need to learn about what really happened and stop blaming their names and start blaming the criminal bankers.

    Why are people so quick to blame their neighbors and stick up for the filthy rich scumbag bankers ?

    • Florida Defaulter - Because There Was No Other Choice says:

      I meant to say . . . . People really need to learn about what really happened and stop blaming their NEIGHBORS (not names) and start blaming the criminal bankers.

    • l vent says:

      They never securitized shit either. Since when can you securitize a speculation? You can’t. The failed bank who gave me my fake, phony fraudulent mortgage is now hiding inside of a foreign bank in an unsecured, not FDIC insured trust.. All of these mortgage loans were fake, phony and fraudulent. All they did was use the American people as their own personal credit card and used all of us in their Giant Ponzi Scheme heist. WE HOMEBUYERS, WE WERE ALL — USED AS HUMAN CAPITAL FOR THE CRIMINALS TO SPECULATE OFF OF. NICE HUH? .They fooled and screwed over millions of homeowners and investors selling what amounted to no more than alot of nothing more than they admitted the MBS’s were alot of: pigs and crap. All of these crooks, these bastards made 100 trillion dollars off the mortgage fraud in a giant speculation game called mortgage derivatives and gambled off of nothing more than THIN AIR A/K/ A SPECULATION CNBC reported these criminals made 60 trillion in 1999 alone off of the MORTGAGE DERIVATIVES scam of the century. The mortgages were fake, the mbs’s were fake. It was ALL FRAUD. The proof is in the ORIGINATION FRAUD, in the titles and in the public recordings and through out the non-existance of a clear chain of title that includes MERS.

      • housemanrob says:

        So Vent. What we are really talking about is how they lined us up and gunned down execution style, againt the bloody wall………..AND THAT AINT’ NO EXAGGERATION!!

      • l vent says:

        housemanrob, yes, and these white collar criminals were so very diabolical and strategic in their planning of our financial execution. The poorest and most vulnerable went first. They are out for no less than complete financial destruction of the whole country. They fully intend to Bankrupt the whole country. This FINANCIAL REIGN OF TERROR by the FOREIGN MULTINATIONAL OWNED FEDERAL RESERVE and BIG OIL are killing off more of us and then if you get an illness or something BIG PHARMA will also pitch in and financially murder some more of us. They need a very vulnerable and weak America and then all that they will need is a big disaster like another manufactured financial collapse or God only knows what else they would try and manufacture to try and take America over. There is a you tube video that is “predicting” an enormous earthquake on the NEW MADARIN FAULT LINE in May 2011. There are more nuclear reactors in my state than any state in the country.

      • l vent says:

        What I meant to say was these FOREIGN MULTINATIONAL FINANCIAL TERRORISTS used an AMERICAN FACE, these WHITE COLLAR CRIMINALS who were FANNIE MAE, FREDDIE MAC, THE PRETENDER LENDERS, THE BANKSTERS, MERS to hide behind and carry out their evil doings. They were like Manson, they used innocent enough looking perps to carry out their crimes..

    • AliceN.Wunderland says:

      Florida, I am ‘old school’. That is how it worked when I was in the business. I am devastated by what I am witnessing. I also know that I know people that are still in the business that have done the things this article addresses. I have lost respect for my former colleague’s and don’t even wish to call them friends anymore. One of these former friends came to me a few years ago and tried to sell me one of these super duper loans. I was informed that his fee would be $10,000. I hung up thinking what universe does he think I live in. It was like the corruption had become so ingrained in him that all I was was a dollar sign, not a friend that had been in the business some 25 years and had some knowledge about the mortgage business.. What I did not know however, was how rotten it had become, how totally despicable. All the advice I was giving friends and relatives was a lie. All the rules, all the guidelines I used no longer applied in the last ten years. All I can say now is don’t even buy a house and if your paperwork has MERS on it you have a fraudulent loan. This things is blowing up big time and it’s time everyone stops making housepayments on this fraudulent mess.

      • Florida Defaulter says:

        AliceN.Wunderland – It’s always great to hear people who have been in the business speak out like you. I have a friend who worked for Bank of America for years as a “mortgage consultant” and because she couldn’t do all of the unscrupulous things she was being asked to do, she quit. She ended up working as an administrative assistant for half the pay she’d been making with BOA, but she told me “At least I can sleep at night”.

      • AliceN.Wunderland says:

        Florida, your friend is needed on this site. More people from the industry need to speak out about this. People that have been pressured to compromise their principles, their honesty, and morality and have refused to do so. Yes, ‘she can sleep at night’. I can sleep at night but I mourn for the people that have been abused by my industry. The mortgage business was in my blood, I loved my job. Now I despise the whole industry, the realtors that were in on the game, the loan officers that gave out the phony “pre-approvals”, the title companies that have idiots working for them that don’t know how to clear titles, and the closers that turned a blind eye when they clearly must have known. And I will not leave out the loan processors that didn’t care anymore and the underwriters who approved this garbage. It is all garbage, a stinking pile of garbage. Everyone of the people involved had a choice to make, whether to be part of it or refuse. I am so glad your friend refused.

  5. l vent says:

    Great job calling the bastards out! THEY ARE ONLY POWERFUL WHEN GOOD PEOPLE DO NOTHING. Here are a couple great you tube videos that really call the bastards out of their rabbit holes. you tube search these titles: 9/11 & Future Events- Eric Jon Phelps, listen to shat Mr. Phelps is saying about the banksters, esp. at 50:49, and also The Assassination of JFK. Jr.- Full Version. Spread these videos to everyone that you know. They are long but well worth taking the time to watch. Here is another great link as well. Mr. Phelps did decades of research to back up his claims.

    • Thanks I vent….this info needs to be repeated alot so everyone knows the truth and the facts. Mr. Phelps knowledge was done thru many years of reseach…but alot was told and written many many years before….Mr. Phelps does not just mention the findings..he explains them in detail…very interesting. I suggest reading any and all works of this great man…google what he writes and you will find it all flows together…..

      • l vent says:

        Yes, Marilyn you are so right, the more people we can get behind this TRUTH MOVEMENT, the better for all. They have ALL gone way too far. They have taken all of their tremendous wealth and instead of making it a better world, they have become diabolical and maniacal and have nearly destroyed the world. I believe that the truth about all of their diabolical evil deeds and plans will set us free. I believe they are only powerful when good people do nothing and that has gone on way too long. The state of our great nation is the undeniable proof that absolute power corrupts absolutely and that is an intolerable, tyrannical and fascist business model.


    Shoot them all.
    If you don’t have the guts, call me.
    Killing is easy. Getting away with it, not so much.
    As we can see here, in the way WAMU killed so many people’s lives, by slowly bleeding them to death.
    Now we have 50 lame brained Attorney’s General, probing a few asses, a few investigations,
    by toothless predators, etc.

    • l vent says:

      And the FEDERAL RESERVE BANK and BIG OIL are finishing all of the rest of us off with hyper-inflation and a massively devalued fiat currency called the dollar. The DOJ is NOTHING MORE THAN A BUNCH OF — USELESS BASTARDS WHO ARE COMPLETELY CORRUPTED.

      • Of course they too, are corrupted…Federal Reserve, Big Oil Cats and the DOJ….along with ALL the rest and they know who they are…and they know WE know who they are. Millions of people are watching them from the shadows…and it may be .hard to sleep with one eye open knowing millions are burning with anger….life can be hell when you make it a hell…..Step up to the plate Dept. of Justice…you have sat back long enough…in more than just the foreclosures. knowing the crimes planned and done makes the Dept of Juctice a participant to the crimes…….

    • YES….WAMU was rotten from the core….criminals from way back….CEO’s and the pee-ons knew what they were doing..knew of all the frauds….laughed as they stuffed their deep pockets with many millions per year……and walked away to enjoy a very wealthly life…while their scam ate the heart and soul out of the victims…..death to them all.
      The greed that warped their minds…..spread to brokers who went along with the fraud to make big money…they lied from the beginning to end of the loan pushing the ARM OPTIONAL as the loan that beat the 30 year fixed loan…’ THE NEW TREND IN MORTGAGES ‘ What they failed to tell you was it was all fraud…you were doomed to fail in just a short time. The worse the loan the brokers wrote up…the more money they were paid…..
      From there it went to the ‘ banker’…the pretender lender….the bank took the fraud from the broker and passed it thru with no underwriting…nothing but fraud .
      The Title Company doing the closing….was in on the scam….hiding the ‘ real ‘ funder from the borrower…requesting the recorded mortgage back to the title co…NOT TO THE BANK….from there the the title co. sent the recorded mortgage to the ‘ real ‘ funder…not to the bank that put their name on the Note/Mortgage. The title co. had already received the ‘ wired money ‘ (??) before the actual closing…..but kept the info from the borrower due to a ‘privacy act ‘ to hide the fraud…can you say Criminal Intent??.
      So let’s hang them all…bastards who pretended to be professionals but were all part of the swindled ponzi fruad…and all making big money.
      What they did not realize was….the mortgages were paid for at the closing…..and their bank name was fraud on the Note/ Mortgage….recorded as fraud in the county records. Read Neil Garfield on this…he knows the facts….we own the homes. YOU PLAY..YOU PAY..EVEN IN CRIMINAL FRAUD…..HOW DOES 150 YEARS SOUND AND STRIPPED OF ALL FRAUD MONEY IN EXCHANGE FOR AN ORANGE UNIFORM ???????

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