The Collapse Of Washington Mutual

Go2Guy

Well-Known Member
Mar 18, 2006
8,841
1,056
113
Houston, TX
Business & Technology | Part one | Reckless strategies doomed WaMu | Seattle Times Newspaper

Interesting article summarizing everything wrong about the mortgage / lending bubble.

But this story on how OJ Simpson was approved for a second mortgage loan is shocking:

"Someone in Florida had made a second-mortgage loan to O.J. Simpson, and I just about blew my top, because there was this huge judgment against him from his wife's parents," [Fay Chapman, WaMu's chief legal officer from 1997 to 2007] recalled.

Simpson had been acquitted of killing his wife Nicole and her friend but was later found liable for their deaths in a civil lawsuit; that judgment took precedence over other debts, such as if Simpson defaulted on his WaMu loan.

"When I asked how we could possibly foreclose on it, they said there was a letter in the file from O.J. Simpson saying 'the judgment is no good, because I didn't do it.' "
 

Help Support Us

Become a patron