Their testimony follows an 18-month investigation by a Senate panel that found fraud throughout the banks lending operations and failure by management to stem the deception despite internal probes.
WaMus pay system rewarded loan officers for the volume and speed of the subprime mortgage loans they closed on. Extra bonuses even went to loan officers who overcharged borrowers on their loans or levied stiff penalties for prepayment, according to the report being released by the investigative panel of the Senate Homeland Security and Governmental Affairs Committee.
Testifying at a hearing of the subcommittee Tuesday are former Washington Mutual CEO Kerry Killinger, ex-President - - - - >

In theory, the effort unveiled Friday would help millions of troubled homeowners who owe more on their mortgages than their homes are worth, or who are jobless and need a break on their payments.
But it depends on cooperation from investors and bankers, many of whom have been locked in disputes over whether to reduce the debt owed by homeowners.
And just like the bank bailouts, this rescue plan poses risks. If it doesnt slow the wave of foreclosures or if home prices nosedive, the tentative recovery in the housing market could fizzle.
The Obama administration says the plan will help stabilize the - - - - >

The legislation, an Obama domestic priority overshadowed by his health care victory, represents the most sweeping rewrite of college assistance programs in four decades. It strips banks of their role as middlemen in federal student loans and puts the government in charge.
The House passed the measure 220-207 as part of an expedited bill that also fixed provisions in the new health care law. Earlier Thursday, the Senate passed the bill 56-43.
The switch to direct government loans will result in savings to boost Pell Grants and make it easier for some workers to repay their student loans. In addition, some borrowers - - - - >

Northern Rock said it posted a profit of 466.7 million pounds ($696 million) in the second half, following a loss of 724.2 million in the first half of 2009.
For the full year, Northern Rock reported a pretax loss of 257.5 million pounds ($384 million), down from a loss of 1.355 billion pounds in the previous year.
Loan loss impairments rose to 1.05 billion pounds from 894 million pounds in 2008.
“Loan loss impairment charges are expected to remain high during 2010, relative to historic norms, but below the level recorded in 2009,” the company said.
The results were the last for the old - - - - >

The default rate for loans on office, retail, hotel and industrial properties surged to 3.8 percent from 1.6 percent a year earlier, the New York-based real estate research firm said yesterday in a report. The default rate for loans on apartment buildings climbed to 4.4 percent from 1.8 percent.
“The level of distress continues to rise irrespective of improving economic trends,” Sam Chandan, Real Capitals global chief economist, said in a telephone interview.
The - - - - >

During the housing boom, millions of people borrowed against the value of their homes to remodel kitchens, finish basements, pay off credit cards, buy TVs or cars, and finance educations. Banks encouraged the borrowing, touting in ads how easy it is to unlock the cash in their homes to “live richly” and “seize your someday.”
Now, the days of tapping your house for easy money have gone the way of soaring home prices. A quarter of all homeowners are ineligible for home equity loans because they owe more on their mortgage than what the house is worth. Those who have equity - - - - >

But Kurihara has fought back, with impressive results.
The reason is simple - a recognition that Japans famously high suicide rate is not so much a feature of Japanese culture, drawing from samurai or kamikaze traditions, but is uniquely woven into the health of the economy.
So instead of treating the suicidal just for depression, as has long been the practice, the city offers financial and legal counseling, along with “hope loans” - or “nozomi” loans in Japanese - to get the needy out of debt.
The suicide rate in Kurihara fell from 48.6 per 100,000 people in 2005 to 27.5 in 2007, - - - - >

JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. are approaching managers of leveraged loans to offer terms for new collateralized loan obligations following a record rally this year in the debt, according to people familiar with the discussions who declined to be identified because the talks are private. The highest-rated portions of CLOs have climbed to 89 cents on the dollar from a record low of 69 cents in April, according to Morgan Stanley data.
The $440 billion market for CLOs, which pool loans - - - - >

The administration will announce its expanded program on Monday, Treasury spokeswoman Meg Reilly said.
“We are taking additional steps to enhance servicer transparency and accountability,” Reilly said. She said the goal was to increase the rate that troubled home loans were converted into new loans with lower monthly payments.
Industry officials said the new effort would include increased pressure on mortgage companies to accelerate loan modifications by highlighting firms that are lagging in that area.
The Treasury is also expected to announce that it will wait until the loan modifications are permanent before paying cash incentives to mortgage companies that lower loan payments.
Under - - - - >

Stevens made the remarks during a speech at the National Association of Realtors annual conference and expo in San Diego.
His comments come days after the agency revealed its financial reserves have fallen to a dangerously low level due to more homeowners defaulting on their loans. The FHA does not make loans, but rather offers insurance against default.
Thats led to mounting concerns that it will eventually need an infusion of cash like government-controlled mortgage finance companies Freddie Mac and Fannie Mae.
But Stevens sought to dampen those concerns, noting that despite the most severe housing recession in decades, the agency has $31 - - - - >