Risky Loans
WaMu tops lenders in some riskier loansTue Apr 17, 3:15 AM ET
NEW YORK - Washington Mutual Inc. (NYSE:WM - news) topped the list of mortgage lenders in the percentage of loans it gave to investors or second-home buyers, the Wall Street Journal reported on its Web site on Tuesday.
Such loans are generally considered more risky than those to borrowers who take the money for their primary residence, the Journal said.
Of the loans that WaMu originated last year, 15 percent were backed by homes that were not the borrower's main residence, compared with 13 percent at Countrywide Financial Corp. (NYSE:C - news), the paper said, citing its analysis of data filed with banking regulators.
The Journal also said that Citigroup and WaMu had the highest concentrations of loans with high interest rates, which are generally subprime mortgages.
A WaMu representative could not immediately be reached for comment, but a spokesman told the Journal that the company's lending standards were tighter for investor properties and second homes.
posted by Mike Young @ 5:32 PM
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