Posted on 09/11/2002 1:38:48 PM PDT by Dems_R_Losers
WaMu to Suspend Lending in Mississippi Washington Mutual Inc., Seattle, is in the process of suspending all its lending channels in the state of Mississippi due to litigation risk and other factors. "We are evaluating the litigation environment and business climate in the state," WaMu senior vice president and associate general counsel Jim Garner told MortgageWire. "That is why we are suspending loan originations." The nation's largest thrift holding company got whacked last year when a Mississippi jury handed down a $71.2 million verdict against City Finance, a consumer finance subsidiary of WaMu that is currently known as Washington Mutual Finance. Mr. Garner said various factors contributed to WaMu's decision to suspend originations, but he acknowledged that "the verdict … is indicative of why we would consider this."
Probably, but the type of people the Trial Vultures get on juries down there would settle for a six back and a bucket of wings. The big payoffs go to the judges who are all in the lawyers pockets.
"Unfortunately, a recent study by the Federal Reserve has disclosed just the opposite: Asians defaulted at a rate of 3.2 per cent, white Americans at a rate of 4.3 per cent, Hispanics hang in close at 5.1 per cent, and American Indians are next at 6 per cent. And bringing up the tail end position are black Americans at 9 per cent!"
From staff and wire reports
A Mississippi jury has awarded more than $71 million in damages to plaintiffs in a lawsuit accusing Washington Mutual Finance Group LLC of goading customers into renewing loans with additional undisclosed charges.
The verdict in Holmes County late Tuesday gave $69 million in punitive damages and more than $2.2 million in compensatory damages to 23 plaintiffs following more than two weeks of testimony.
"All of us were in shock," said Zenester Moore, 38, of Tchula, one of the plaintiffs. "I know I didn't hear a word from anybody because I was in shock. At first the court was quiet and then the courtroom got noisy. I couldn't believe it."
Seattle-based Washington Mutual Finance Group currently operates more than 2,300 consumer banking, mortgage lending, commercial banking, consumer finance and financial services offices throughout the nation.
The lawsuit filed against Washington Mutual Finance Group, formerly known as City Finance Co., accused the bank subsidiary of not disclosing to customers insurance premiums in loan renewals.
"Washington Mutual illegally flipped loans," said Rep. Edward Blackmon Jr., attorney for the plaintiffs ."Flipping simply means that they enticed people back into the office to renew loans once they had paid down on a certain amount because it is very profitable for them to renew loans rather than allowing them to pay it out."
Blackmon said by "flipping" the loans, Washington Mutual could "add on various insurance policies." He said customers were also unaware of the relationship City Finance had with insurance companies.
"The companies that were issuing the insurance appeared to be disassociated with City Finance, but in fact, the agreement between these companies and City Finance allowed City Finance to retain a substantial proportion of those premium payments," Blackmon said.
Many of the plaintiffs are from Holmes and Leflore counties, Blackmon said.
The City Finance lawsuit is not the only litigation filed against Washington Mutual that alleges unfair lending practices.
A class action lawsuit was filed in Washington in March, charging the company with engaging in deceptive, unfair and oppressive business practices against loan borrowers. That suit has yet to go to trial.
Libby Hutchinson, a spokeswoman for Washington Mutual, said Tuesday's verdict will be appealed. "As a lender we adhere to the highest standards of responsible lending and we are committed to serving the financial needs of our clients in the most ethical manner possible," Hutchinson said. "We believe that the false allegations against our company will be overturned on appeal."
I like it. I will steal it.
"The lawsuit filed against Washington Mutual Finance Group, formerly known as City Finance Co., accused the bank subsidiary of not disclosing to customers insurance premiums in loan renewals."
Loan Flipping, per the Jackson "Crying Liar".
http://www.clarionledger.com/news/0106/14/a3.html
June 14, 2001
Lender hit with $71M verdict
Lawsuit accused Washington Mutual of flipping loans
From staff and wire reports A Mississippi jury has awarded more than $71 million in damages to plaintiffs in a lawsuit accusing Washington Mutual Finance Group LLC of goading customers into renewing loans with additional undisclosed charges. The verdict in Holmes County late Tuesday gave $69 million in punitive damages and more than $2.2 million in compensatory damages to 23 plaintiffs following more than two weeks of testimony.
"All of us were in shock," said Zenester Moore, 38, of Tchula, one of the plaintiffs.
(snip)
"The companies that were issuing the insurance appeared to be disassociated with City Finance, but in fact, the agreement between these companies and City Finance allowed City Finance to retain a substantial proportion of those premium payments," Blackmon said.
(snip)
A class action lawsuit was filed in Washington in March, charging the company with engaging in deceptive, unfair and oppressive business practices against loan borrowers. That suit has yet to go to trial.
(snip)
please post the following
I am trying to gather information against Washington Mutual. Please
post my information as Kimberly Baggott, 6224 Taylor Ridge Road,
Montgomery, AL 36116 or email -- kimberlybaggott@yahoo.com. I am looking for
any and all information on the frauds that Washington Mutual has
committed. I am also looking for any information on the location of the
Board of Directors. Please contact me, I have contact people with the
Department of Justice and the Securities and Exchange Commission. They are
very interested in the information I have given them. I am also
collecting enough information against WAMU to go public thru the associated
press and others (dateline, 20/20, 60 minutes). My goal is for what has
happened to us not to happen to anyone else (CLOSE THEM DOWN).
I also have the address for the board members and other boards that
they serve on. Please contact me for the list. This can be very helpful in giving your story to the other company of board of directors.
Remember that if you are convicted for a crime (like Martha Stewart) you can never serve on another board for your lifetime. Many of these Directors serve on multiple boards and I don think that they would want what happened at Enron (Enron investigation lead to Worldcom, Health South & Quest) to happen to them.
Please send me any information you may have on Washington Mutual. My mortgage by Washington Mutual has serveral problems least being not notarized properly to the interest rate and amount rate is different. If the papers left to me were identical to the papers I signed. Then why is the papers recorded at the probate office different?
If there are others who have stories concerning washington mutual, please give them my information. the more I collect the more I have to go public with to put them out of business.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.