Washington Mutual says it is dedicating an additional $1 billion as part of its borrowers' assistance program designed to help WaMu homeowners with subprime mortgage loans stabilize their finances and avoid foreclosure.
‘Since the fund was first established in April 2007, WaMu has helped more than 7,500 homeowners work to avoid foreclosure. Now that we have utilized most of the initial funding, we are adding an additional $1 billion to the original commitment for a total of $3 billion dedicated to assisting our borrowers,’ says Kerry Killinger, CEO of Washington Mutual.
Under the program, eligible 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.
As part of the company's retail-focused business strategy, WaMu has also presented a simplified set of home loan products that are now available to customers through WaMu's retail banking stores and Internet and telephone sales channel.
The company's prime first-mortgage product set falls into four basic categories: fixed-rate mortgages, hybrid amortizing adjustable-rate mortgages (ARMs), hybrid interest-only ARMs and home equity products. WaMu will discontinue all negative amortizing loan product options and will also cease to offer its WaMu Mortgage Plus loan product.
Source: WaMu