June 24 average daily rates in Orange County for 30-year fixed loans with one-point fee: Conforming up to 6.078%, Jumbo up to 7.446% and Conforming-Jumbo up to 7.208% (Note: conforming-jumbo rates are for loans from $417,000 to $729,750, while conforming is up to $417,000 -- both types are sold to GSEs. Jumbos here are $730,000 or higher and not sold to GSEs.)
Source: Newspaper Chart Services 
WaMu to cut 3,000 jobs nationwide, gets $7 billion infusion
April 8th, 2008, 11:25 am · 7 Comments · posted by Matt Padilla, Register Reporter and Blogger
(Update: Orange County offices cut, broker quote.)
Washington Mutual, battered by rising loan delinquencies, said Tuesday it will receive $7 billion in capital from an investment group led by private equity firm TPG and that it will stop doing business with mortgage brokers, reports the Associated Press.
The Seattle-based thrift said it will lose $1.1 billion during the first quarter and take a provision for loan losses of $3.5 billion — $1.5 billion more than previously expected. (Such provisions are income lenders must set aside for expected loan losses.)
And lastly WaMu said it will close all remaining standalone home loan centers and lay off 3,000 workers. A company spokesman said WaMu will close seven free standing home loan centers in Orange County by the end of the month, but he did not disclose the total number of workers who will lose their jobs here.
The closing of its wholesale unit that deals with brokers, reported yesterday on the Implode-o-Meter and Housing Wire web sites, is yet another blow to mortgage brokers and possibly some consumers who are facing fewer sources to get loans. A number of lenders have limited or all together stopped working with brokers, while other lenders have simply failed — think New Century Financial of Irvine, the bankrupt subprime lender that got most loans via brokers.
The recent collapse of Bear Stearns, a big player in mortgage-backed securities, was perhaps the biggest blow to the wholesale channel before the announcement today by Washington Mutual.
Jeff Lazerson, head of brokerage Mortgage Grader in Laguna Niguel, said in an e-mail, “Reduced choice is never good for consumers and the mortgage broker community that consumers may depend upon. WAMU was an excellent source for us. We will be losing some fine professionals because of WAMU’s decision to exit wholesale. The good news is that when the market recovers you will see wholesale sourcing come back with a vengeance. For now, we’ll survive with the half dozen or so national brands that we have left.”
Here’s more from AP:
Washington Mutual will sell equity securities to an investment fund managed by TPG Capital and to other investors in order to raise the funds. Washington Mutual did not disclose the names of other investors, though the bank said they include top institutional shareholders.
TPG founding partner David Bonderman, a former WaMu director, will also rejoin Washington Mutual’s board as part of the agreement.
“I think it’s enough capital to get them all the way through,” said D.A. Davidson & Co. analyst Jim Bradshaw, citing the cash raised Tuesday, the company’s plan to cut its dividend and $2.9 billion raised late last year in a stock sale.
But, he said, “I suspect the company is going to be smaller a year from now, maybe dramatically smaller.”
To read the full story CLICK HERE.
April 8th, 2008 at 11:50 am
I think they will most definitely be many Wamu layoffs in Orange County.
My heart goes out to those who lose their jobs. This can only put more pressure on the already collapsing housing market in OC.
Let’s hope that the decline in home prices ends soon, otherwise expect more layoffs.
Unfortunately, I still don’t see the light at the end of the tunnel.
http://www.NationalBubble.com
April 8th, 2008 at 12:01 pm
As much as I feel for those loosing jobs and I dont wish it on anyone. However, if and maybe if banks act like banks and investments houses act like investment houses and we actually look at profit over a 5 year period and bonus and pay is performance rated and NOT just for the previous year etc..etc..etc.. the problem will fix itself. We are kidding ourselves to band-aid all of this and expect things to change. Based on all the WRONG analysis going on by the so called experts who I might add have been all wrong, I project our economy will not be fixed for years. Reall simple, no money, no loans, no homes, no credit cards, no buying what we really dont need and we start savings accounts and look for the long term and not the Jan bonus. Just my thoughts and I am no expert, but like many of us non experts we do have common sense and dont need to know accounting to see the balance sheets aint getting better.
April 8th, 2008 at 7:53 pm
When Bush bear stearned Bear Stearn, by offering to take over the firm
by paying the unheard of $2.3 million, but instead, congress decided to dole out $38 billion, and virtually ignored National Association of Securities Dealers’ 1992 expose on Brokers/Dealers who took bribes and hid the real economic worth of defunct businesses, as they in the end were sued by angry customers. Bringing those numbers up to date, http://www.finra.org/ has shown that the ever climbing litigations including that of Washington Mutual which has gotten $7 billion from taxpayers, so that they may pay for it at the public’s expense?
April 8th, 2008 at 10:18 pm
WAMU said they were closing down the loan fullfillment center in Irvine. Is that the big building? It sounds like WAMU may become TE(xas)MU.
April 8th, 2008 at 11:22 pm
Good riddance!!
brokers are nothing but scams. they profited handsomely from other people’s misery
April 9th, 2008 at 1:12 am
Albert Franklin,
Yet again…..HUH??????????
April 10th, 2008 at 6:54 am
TPG (FKA Texas Pacific Group) is one of the smartest collection of rich people in the country. They are very shrewd and don’t put their money in things unless they see the way to make big profits. Almost 20 years ago, this roughly same group of guys bought the failed FKA American Savings and Loan from the government regulators when there was a panic move to get the failed S&Ls off the government’s books.
They turned it around into the FKA American Savings Bank and it was the first bank in California sold to FKA Washington Mutual Bank. (At a huge profit of course.) Now that WaMu has pretty much collapsed, after driving away any talent that used to work there, TPG is buying back control for pennies on the dollar. What a country!