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Washington Mutual / How WAMU contributed to the mortgage meltdown

1 PO Box 9001123Louisville, KY, United States Review updated:
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I had an adjustable rate mortgage for which the full principal and interest payment was automatically withdrawn from my account monthly. After 3 years, when the rate adjusted, without warning, they changed the repayment option I was in to the "minimum payment" which didn't even pay the full interest amount. Without realizing it, despite my monthly payment having increased by 50%, I was in a negative amortization situation--the amount of principal owed was getting LARGER each month. FRAUD!

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  • Fu
      21st of Jul, 2009
    0 Votes

    I also had a extremely bad experience with WAMU with my mortgage.
    I had inquired about my 5-year hybrid ballon/arm mortgage as I knew it was about to mature. I went to my local branch where a Mortgage Advisor looked up on her computer and said that my mortgage was automatically adjusted to a 30 year with a very low interest rate. This was not the case, and they didn't know about it until months later. I did everything my Mortgage Advisor instructed me to do to make payments and she said that she will take care of the issue for me for the payments that were rejected by WAMU. I also had her start a refinance for me.

    The refinance has taken 7 months but never went through. I have a steady job, have almost 50% equity in my home, have significant assets, and a good credit rating, so I don't know why it took so long and was never approved.

    My Mortgage Advisor eventually went AWOL and she never returned my messages for a month. I made many complaints, which I discovered that she was eventually fired, but I never got an apology nor admission of their negligence.
    Communications at WAMU is extremely poor and it is unacceptable that they only have ONE toll free number to handle all of their customers. It is common to be on the phone for 15 minutes before talking to a person to direct your call.

    To every avoid WAMU/Chase at all costs. It is not worth your time, money and sanity. WAMU should have died in the Banking crash, and Chase should be embarrassed to inheret such a bad company.

  • Fr
      23rd of Jul, 2009
    0 Votes

    Similar experience on a Wamu/Chase refinance which has been swirling the drain since January.

    Had prior home loan and a re-fi with Wamu in past and they were great. Rates down and goal was from interest only to 30 yr. fixed, great rate offered. Application process quick and easy, appraisal done in 1 week, then downhill from there. Have at least 60% equity in home.

    The short story: I performed all duties/provided all documents; they did not return calls or emails, they allowed the lock to expire on the rate, told me they would stand good by it (when I told them I saved my emails to them!), received a lterr of committment from them which they did not act on my reply, now on loan processor # 4 .

    Phone calls/voice mails are either not answered or full (I have made at least 50 calls); emails not answered or they have given me wrong email; phone disconnects when general number called and ask to speak with real person!

    Spoke with a live human from there yesterday, says my computer file states they contacted me July 15th, but did not say why or purpose of call. Checked cell and phone logs, called every number I didn't recognize, none of them Wamu/Chase.

    I am frustrated, disappointed and disgusted with them. I'm working with a new lender, only after to read some bad comments about their practices, but hoping for the best. I'll be furious if Wamu tries to collect the $875 application fee...better go check to see if they already did!

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