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Thursday, Apr 25, 2024

WaMu to Close 3 Area Loan Offices

Washington Mutual Inc., affected by mortgage delinquencies and defaults, said it obtained an infusion of $7 billion capital from private equity firm TPG Inc. and other investors, Reuters reported, but projected a $1.1 billion quarterly loss and set plans to eliminate 3,000 jobs. WaMu, as the largest U.S. savings-and-loan is known, announced it will close its 186 stand-alone home lending offices and stop offering loans through mortgage brokers by the end of June. There are three such stand-alone home loan centers in the greater Valley region, Tarzana, Valencia and Camarillo. Mortgages will continue to be offered in WaMu’s retail branches, of which there are 72 in the greater Valley region and roughly 2,300 nation-wide. Gary Kishner, spokesman for Washington Mutual, said it’s premature to say how many local jobs will be cut, because some of those positions will be absorbed into the region’s retail financial centers. WaMu will also cut its quarterly dividend per share from 15 cents to 1 cent, saving $490 million a year. It is the second dividend reduction in the last four months. The Associated Press reported that impact to the thrift has been heavy from the depth of its writing interest-only and so-called negative amortization loans. The firm’s “significant” exposure in California and Florida, where property values have declined the most, have had a major affect as well. James Hames

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