WaMu Hawaii Trips Drove Risk as Regulator Failed, Report Says
Washington Mutual Inc. (WAMUQ), once the largest U.S. thrift, rewarded bankers for overcharging customers on subprime mortgages and selling the worst-performing loans to investors, a U.S. Senate panel concluded.
The lender gave its top producers free trips to places like Hawaii and the Bahamas in return for increasing mortgage volume, even as performance of the loans deteriorated, according to the Senate Permanent Subcommittee on Investigations report on the financial crisis.
“Loan officers and processors were paid primarily on volume, not primarily on the quality of their loans, and were paid more for issuing higher-risk loans,” the panel found. “Loan officers and mortgage brokers were also paid more when they got borrowers to pay higher interest rates, even if the borrower qualified for a lower rate — a practice that enriched WaMu in the short term, but made defaults more likely.”
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Wish I could afford a trip to Hawaii guess I wasn’t in the right line of work.There goes the neighhborhood.
LOL
They were paid more for higher risk loans? What more proof do they need? This was a PONZI SCHEME AND IT WAS A SET UP FOR ALL OF US TO FAIL AND IT WAS INTENTIONAL. RESCIND OUR FAKE MORTGAGE LOANS, GIVE THE STOLEN HOMES AND THE STOLEN WEALTH BACK TO THE PEOPLE. THEN THROW THESE FINANCIAL TERRORISTS IN PRISON. THEY TALK ABOUT NATIONAL SECURITY RISKS FROM OUTSIDE OF AMERICA? THEY SHOULD TAKE A LOOK AT THE TERRORIST RISK ON THE INSIDE OF AMERICA. WE HAVE BEEN HIJACKED BY FOREIGN MULTINATIONAL TERRORISTS WHO HAVE INFILTRATED AND CORRUPTED THE ENTIRE SYSTEM with the help of AMERICAN TREASONISTS. WE ARE MORE AT RISK FROM THE TERRORISTS WITHIN AMERICA THAT ARE POSING AS AMERICAN INSTITUTIONS. THEY ARE NOT AMERICAN INSTITUTIONS, THEY ARE IMPOSTERS. THEY ARE OUT TO DESTROY AMERICA. THEY WANT NO SOVEREIGN NATIONS. OUR US CONSTITUTION OVERULES THEM AND WE THE PEOPLE WILL PREVAIL. WE OWE NO ALLEGIANCE TO THE UN/ NEW WORLD ORDER. GOD BLESS AMERICA.
I vent…WAMU sure the hell did….and the Senate Comm. that ‘investigated ‘ WAMU after the so called purchase..( Did Chase ever really purchase and sign agreement with FDIC….last I read they had not) Sen. Levin (MI) said there was fraud in WAMU’s dealings…and the top executives ALL knew about it and did nothing…I really don’t think there was one area from before the closing till WAMU was put to pasture…..that did not have fraud. Even mortgage brokers were crooked..plain out liars..figures changed…….they stuck it to everyone…the ARM’s was the big fraud in 2003 and on…..But WAMU WAS KING OF FRAUD…..Sure it was a giant PONZI scheme…..they would not let the underwriters even check the info on the applications…one gal who tried to do the right checking was told not to even check anything..it was a waste of time….just sign and pass the mortgages on..speed was the money maker….that was because the loans were wrote so that they all would default in a few years….according to the prospectus .the notes were kept by WAMU…and not stamped….not given to the trust…no assignments done…and it said to go to the PSA Schedule E for mortgage listings…all information needed is there..OK..so that I did….and I went thru 13 different pool and Service Agreements..from March 2003 on.and not one had any mortgages listed in the Schedule E…..The PSA said the mortgages were “deliberated omitted.”……WTF…OH YA….My daughter has found fraud from the BROKER to WAMU TO THE CLOSING TITLE CO. and from there on…. A nightmare….So of course big bonus, big trips, big gifts were given according to how high a risk one could pull on a borrower..WAMU made out like a bandit….or should I say a PONZI CRIMINAL…and as far as I am concerned all employees HAD to know of the fraud…money was flying freely…and talk does spread.