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|Washington Mutual Realigns Prime and Subprime Residential Lending Under One Management Team; Move Part of Ongoing Efforts to Serve Customers Better; Improve Operating Efficiencies|
SEATTLE--(BUSINESS WIRE)--Dec. 21, 2005--In a move that continues efforts to better serve home lending customers and improve operating efficiencies, Washington Mutual, Inc. (NYSE:WM) announced today its plans to align its single family residential (SFR) mortgage lending operations under one management team.
The realignment is designed to:
Under the new structure, management responsibility for Long Beach Mortgage Company (the company's subprime lending business) and Mortgage Banker Finance (warehouse lending) will move from the Commercial Group to David Schneider, president of the company's Home Loans group.
The balance of the Commercial Group, including the company's leading multifamily lending business, will report to industry veteran Al Brooks. Brooks, who has been with Washington Mutual for seven years, has been a driving force behind the success of the Commercial unit.
"Bringing our leading prime and subprime lending businesses under common leadership provides us the opportunity to fully leverage our resources to better serve our customers and shareholders," said Steve Rotella, Washington Mutual President and Chief Operating Officer. "At the same time, we have a strong and experienced leadership team that recognizes the unique characteristics of the subprime business."
In a related development, Craig Chapman, president of the company's Commercial Group, will be leaving the company effective January 31, 2006. Chapman said he supports the realignment but that he has decided to seek new challenges outside of Washington Mutual.
Chapman will work closely with Rotella, Schneider and Brooks to transition his responsibilities and ensure the group's continued success.
Rotella added: "We thank Craig for his many contributions to our success over the years and wish him all the best in his next career endeavor."
About Washington Mutual
With a history dating back to 1889, Washington Mutual is a retailer of financial services that provides a diversified line of products and services to consumers and commercial clients. At September 30, 2005, Washington Mutual and its subsidiaries had assets of $333.62 billion. Washington Mutual currently operates more than 2,500 retail banking, mortgage lending, commercial banking, and financial services offices throughout the nation. Washington Mutual's press releases are available at www.wamunewsroom.com.
Forward Looking Statement
Our Form 10-K for 2004 and other documents that we filed with the Securities and Exchange Commission have forward-looking statements. In addition, our senior management may make forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements provide our expectations or predictions of future conditions, events or results. They are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. These statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made. There are a number of factors, many of which are beyond our control that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Some of these factors are:
-- Volatile interest rates impact the mortgage banking
business and could adversely affect earnings;