California Real Estate Fraud Report

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21
Dec

WaMu in Hot Water with the SEC

Washington Mutual, aka WaMu, is being investigated by the Securities and Exchange Commission, as well as the Office of Thrift Supervision, for deliberately inflating of home appraisals via its partnership with First American Title. First American has a subsidiary called eAppraiseIT, which purportedly under pressure from WaMu, conspired to provide the inflated property values in order to boost fees for its own services, as well as loan fees WaMu received.

WaMu not only (obviously) failed to disclose to purchasers of its mortgage-backed securities that it was pumping up home values, but also how its financial results were obtained to shareholders of its stock. Read the Full Article here.

In a statement published by Reuters, WaMu spokeswoman Elizabeth Borelli stated

“We are voluntarily and fully cooperating with the SEC’s inquiry as well as the (Office of Thrift Supervision), and look forward to bringing the facts to both the regulators and public.”

After spending a month and a half investigating these allegations, we can say with confidence that there has been no systematic effort by WaMu to inflate home appraisals. We take these allegations very seriously.”

WaMu’s greed and alleged illegal activities may come back to haunt it in terms of how it is going to handle disposing of the properties it over-funded that face foreclosure. According to the Los Angeles County Recorder, WaMu owned properties accounted for 3% of the foreclosure (NOD) filings for the week of December 3, 2007. It was beat out by its competitor, CountryWide, which won the most-bad-loans-made contest with 16% of NODs filed.

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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