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|WaMu Commits up to $2 Billion in Assistance to Help Subprime Borrowers|
SEATTLE--(BUSINESS WIRE)--April 18, 2007--As part of a borrowers' assistance program designed to help WaMu homeowners with subprime mortgage loans stabilize their finances and avoid foreclosure, Washington Mutual (NYSE:WM) today announced a commitment to refinance up to $2 billion in subprime loans at discounted interest rates.
Under the program, WaMu subprime borrowers who remain current on their existing loans and anticipate pending payment increases may apply for new discounted fixed-rate loans or other mortgage products available to them.
Key elements of the program will include: -- A dedicated team of specialists providing counseling and assistance to WaMu subprime customers who want to learn more about the various loan options available to them. -- Discounted subprime loans for eligible WaMu customers, including a 30-year fixed-rate subprime loan product with the interest rate currently discounted by 50 basis points (half a percentage point). -- Prime mortgage product options for borrowers who qualify.
A toll-free number (1-800-881-7099) is available to WaMu customers who would like to inquire about this special program.
"We're reaching out to our subprime borrowers to help ensure they are in the best possible position to manage challenges posed by payment adjustments," said Kerry Killinger, WaMu chairman and chief executive officer. "We want our customers to know what's ahead, to avoid surprises, and to understand the choices available to them."
Killinger also said that for borrowers whose loans have become delinquent and are in need of assistance, the company has an experienced team of mortgage professionals focused on providing workout options aimed at keeping borrowers in their homes.
"Early intervention combined with expanded options can make a major difference," said David Schneider, president of WaMu's Home Loans Group. "Customers who work with us to develop a payment plan are more likely to succeed in avoiding foreclosure and balancing other household financial obligations."
Finally, Killinger noted WaMu's long history of cooperation with community groups that specialize in borrower education and foreclosure prevention, and said that the company has joined forces with a number of key partners, including the NeighborWorks(R) Center for Foreclosure Solutions and the Homeownership Preservation Foundation, to launch a national effort to avert foreclosures.
"Stepping up and helping our customers stay in their homes is in the best interest of our borrowers, our communities and WaMu," Killinger added.
WaMu, through its subsidiaries, is one of the nation's leading consumer and small business banks. At Mar. 31, 2007, WaMu and its subsidiaries had assets of $319.99 billion. The company has a history dating back to 1889 and its subsidiary banks currently operate more than 2,700 consumer and small business banking stores throughout the nation. WaMu's press releases are available at http://newsroom.wamu.com.
CONTACT: Washington Mutual Media Contact: Sara Gaugl, 206-500-2822 firstname.lastname@example.org or Investor Relations Contact: Alan Magleby, 206-500-4148 (Seattle) 212-702-6955 (New York) email@example.com SOURCE: Washington Mutual