Monday, August 17, 2009

"EEEEEvil Banks"? Damn Right!

WaMu got a well-deserved slapping from a NYState judge.

Seems that WaMu was owed a buncha money on a multi-tenant building and the owner missed two payments.

THEN the owner wanted to pay off the entire loan--but WaMu pressed for default instead.


...the note required 11.6% interest once the loan went into default (5% above the original rate). Since the building was worth more than the amount owed, by pushing for foreclosure, WaMu could collect this higher interest rate, legal fees, and other fees.

WaMu was a leader in scuzzy practices from A to Z--that is, in originations and (now, clearly) in pushing for default foreclosures.

Evil, yes.

HT: Calculated Risk

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