Mortgage lender shaky in downturn

[UpInArms]

http://www.inman.com/inmannews.aspx?ID=42036

As financial companies' second-quarter earnings results begin rolling out, analysts are closely watching Washington Mutual, which last month slashed its 2004 profit forecast and warned of layoffs.

The woes of the largest U.S. savings and loan also have prompted speculation that it has become a takeover target.

"Eighteen months from now, this is not going to be an independent company," Charlotte Chamberlain, an analyst at Jefferies & Co. in Los Angeles, told American Banker.

But WaMu is not the only mortgage lender struggling. The industry is in shock as the market changes and prior record volume levels dip drastically. The CEOs of BankRate and Wells Fargo Home Mortgage have departed, Cendant is looking to unload its mortgage company and mortgage loan volumes are dropping off across the board.

<snip>

Additionally, the company announced, more layoffs are likely. WaMu already cut about 7,400 jobs in the six months ending March 31, according to the Seattle Times. A company spokesman said more layoffs are anticipated during the remainder of 2004, but declined to specify how many jobs overall would be eliminated.

...more...

[The_Casual_Observer]

1. Tough Ass WaMu.

Did anybody really think that this economic "boom" based on refinancing
and hyper inflated housing prices was going to last forever? They are fucked, I hope that the blood letting starts now and can be over by Jan 2005 when we can have a fresh start.

[AlCzervik]

2. My neighbor worked for a mortgage company that was bought

by Washington Mutual about a year ago, she got laid off 1 month ago.

[bushwakker]

3. I make my living on the periphery of the mortgage industry

and I can tell you the difference between last summer and this one is night and day. Last summer it was 12+ hour days constantly. This summer has been very slow. On a positive note I saved quite a bit of $$$ last year and have been able to enjoy the extra free time worry free.

[TNDemo]

6. Then why is there so little on the market here?

We have been seriously househunting for quite awhile and there is so little to choose from. A report in the paper said there were 1,000 fewer homes on the market this year as compared to last. I can tell by my own subdivision, which usually sprouts for sale signs in the spring along with the flowers but this year there is maybe one or two out of 400. Did everybody just refinance and decide to stay where they are? Someone I know was theorizing that the low rates allowed first time buyers the opportunity and the market got glutted with buyers. Who knows. I'm getting tired of looking.

[Mizmoon]

7. Too expensive to move up to a bigger home

in my neighborhood people are building McMansions mostly because they need more room but can't afford the next step-up. While their homes may be worth a bundle, the next ones up do too.

[MarianJack]

4. I've Dealt With Washington Mutual!

They are the scum of the earth. I almost lost my house 2 years ago when THEY lost 5 of my mortgage payments!

They were Fleet, but changed their names when Fleet's practice of bilking escrow money came to light.

My wife and I refinanced to get the hell away from fleet, only to have Washington Mutual buy the mortgage several months later under their new name.

If you want to deal with them, good luck getting them on the phone, unless you're 4 minutes late with your payment, then they'll dun you like flies on s**t.

These people are the halliburton of the mortgage industry. I'd rather rent than get a mortgage through them! YUK!

[DemoTex]

5. I thought Fleet was an enema company.

Sounds like Fleet's mortgages go right along with their enemas.