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Breaking News....WAMU to shut down all RETAIL AND WHOLESALE lending offices at the end of this month

By Bill Nazur

Mortgage and Lending with First Lending Solutions NMLS ID 1325784

April 07, 2008 11:31 AM

I always knew that the company was in some trouble, given all of the recent changes recently, but it seems like the deferred interest (neg am) loan has become the nail in their coffin.

A friend of mine on Wall Street just informed me that a huge conference call just occurred where Wamu announced that they will only handle loans through their branches, choosing to shut down all retail and wholesale lending offices at the end of this current month, April 30th, 2008.

As I receive transcripts or additional breaking news, I will let everybody know.

Bill Nazur has an extensive background in finance & mortgage lending who gets to serve as an author, speaker, and consultant to the real estate industry, as well as a featured regular guest on FoxBusiness, MSNBC, and Univision. Bill also hosts a new radio show at http://www.realcoachingradio.com/, along with a thriving (yes, its thriving, not just surviving!) mortgage business, powered at Bank of America Mortgage. Bill's experience in calling the current foreclosure crisis, along with many of the real causes, along with the taboos in dealing with such a sensitive subject, led to the publishing of Finding Foreclosures, published by Entrepreneur Press. Allow my team to help you, as we can also lend in all 50 states. While Real Estate is local, knowledge is universal. We hope to help you soon.

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Esko Kiuru

Bethesda, MD

Bill,

WaMu and its potential troubles have been the topic of many discussions over the last year or so and now this, sort of expected. Let's see if it is the last big lender in the mortgage industry to find itself in the weeds.

Apr 10, 2008 04:50 PM

Bill Nazur

First Lending Solutions - Riverside, CA

Esko

I spent a little bit of time there....a little under a year, so I know and understand their marketing strategy, and they believed they could simply keep selling the Option Arm as it was so profitable that they ignored the needs of their very customer base. There is a lot of uncertainty with their staff right now.

Thanks for stopping by.....

Apr 10, 2008 05:56 PM

Dave Armstrong

VanDyk Mortgage - Grand Rapids, MI

Senior Loan Consultant - Grand Rapids, Michigan

It's unfortunate that this had to happen. A lot of good people losing their jobs. I have a good friend that has worked as a wholesale rep for WAMU for over eight years and has consistently been one of the top producing reps in Michigan who is now out of a job.

Dave

Apr 11, 2008 04:09 AM

Bill Nazur

First Lending Solutions - Riverside, CA

Dave

Tragic is probably a better word. I am a firm believer that the good ones will land on their feet. I wish my best to your friend, and all of those at Wamu that have or are about to go through a very difficult time.

Apr 11, 2008 04:40 AM

Tricia Flicker-Miller

Cressy & Everett Real Estate - Elkhart, IN

Cressy & Everett

While it is news, it seems like the same news, different company. When will it stop?

Apr 11, 2008 04:41 AM

S J

Pittsburgh, PA

It's going back to bank directly with no secondary market.

Apr 11, 2008 07:10 AM

Bill Nazur

First Lending Solutions - Riverside, CA

Chadd

I don't think it will become quite that extreme....the secondary market has provided far too much liquidity, but there is a definite flight to quality in underwriting.

Thanks for stopping by.

Apr 11, 2008 07:35 AM

Mina V. Garrey

Commercial Capital Properties - License #01768282 - West Los Angeles, CA

Commercial Capital Properties, Los Angeles, CA

Hi Bill, wow is all I can say. Maybe their lending division should get bought out (just like Countrywide). I only hope there is no large negative impact on the economy, given that it is already slowing as is.

Apr 18, 2008 11:40 AM

Bill Nazur

First Lending Solutions - Riverside, CA

Mina

Unlike Countrywide which has a very diversified portfolio, Wamu hinged their entire portfolio on the Option Arm, (deferred interest negative amortization loan) that just doesnt make sense in todays environment. Their portfolio is NOT performing, which means its at least 60 days behind, their equity lines are not being paid on time, and they've always failed to have fixed rate or interest only products that make much sense......sooooooo, sadly, I can't see anyone buying them anytime soon.

Apr 18, 2008 01:16 PM

Karen Luke

South Metro Property Management, LLC - McDonough, GA

Henry County Real Estate

Where are we headed in this industry? As a realtor do I try to partner with Wachovia or Suntrust to get my client's loans through or do I stay with my broker?

Apr 18, 2008 01:20 PM

Bill Nazur

First Lending Solutions - Riverside, CA

Karen

You will still see a select amount of brokers, whom you'll come to recognize as the best at what they do, as they will have weathered the storm. As well, you will see Bank of America, Wells Fargo, Citibank, and JPMorgan Chase as the leaders who will remain in banking. In a sense, I don't think it is a bad thing getting rid of all the people who got in the business as 'brokers' who never should've been in it to begin with.

Just hang in there and align yourself with those that have experience.

Thanks for stopping by.....

Apr 18, 2008 02:10 PM

Jim Crawford

Long & Foster - Fredericksburg, VA

Jim Crawford Broker Associate Fredericksburg VA

Thanks for updating us with the news!

Apr 18, 2008 02:28 PM

Bill Nazur

First Lending Solutions - Riverside, CA

Jim

Always a pleasure...one of these days, I will have really great news to report!!! :)

Apr 18, 2008 02:32 PM

The Willingham Team ~ MDR Condos

MDR Condos - Marina del Rey - Marina del Rey, CA

Crazy times!!

May 05, 2008 12:42 PM

Tina Merritt

Nest Realty - Blacksburg, VA

Virginia Real Estate

Wow- that's huge. I guess their poor customer service doesn't really matter anymore.

Tina in Virginia

May 05, 2008 12:45 PM

Bill Nazur

First Lending Solutions - Riverside, CA

Kirstin

Crazy times is the understatement of the week!

Tina

Aside from poor customer service, it is a prime example of failed corporate leadership. I spent about 1 year inside of the company, and it was the most poorly run company in terms of management. Great marketing organization, but very poor at strategic planning.

May 06, 2008 06:15 PM

Jon Zolsky, Daytona Beach, FL

Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL

Buy Daytona condos for heavenly good prices

Another one. Will it affect us? Does it makes the pool of lenders smaller, or this is not a big concern?

May 06, 2008 06:41 PM

Bill Nazur

First Lending Solutions - Riverside, CA

Jon

This company became irrelevant when they continued marketing, selling, and promoting the 'neg am' loan when the market was clearly moving in a downward direction. There are enough responsible lenders remaining that it shouldnt be much of an issue. Sadly, ANY other product out there today will increase the monthly payment to the homeowner, since their minimum payment previously was less than the required interest.....it is UGLY!!!

Thanks for stopping by as always....

May 06, 2008 06:46 PM

Rita Bradley

Laguna Hills, CA

Valuation Consultant in Orange County California 949-916-3263

Hi Bill - I hope you are doing well. Rita Bradley

Jun 29, 2008 03:21 PM

Bill Nazur

First Lending Solutions - Riverside, CA

Rita

Doing well....dont hang around here much these days.....working on way too many projects, etc. :)

Jun 29, 2008 05:44 PM