WaMu accused of appraisal fraud

For those who think the banks were innocent bystanders and deserve to be bailed out:

http://money.cnn.com/2008/01/17/real_estate/wamu_lawsuit.moneymag/?postversion=2008011712

NEW YORK (Money) -- A former real estate appraiser for Washington Mutual is suing the bank, claiming she was blacklisted last year for providing a housing market forecast that was too gloomy.

Jeniffer Wertz, who is seeking unspecified damages, says WaMu stopped accepting her appraisals in mid-2007 a month after she reported that her local housing market in California was "declining."

The United States of Subprime

Data Show Bad LoansPermeate the Nation;Pain Could Last Years

By RICK BROOKS and CONSTANCE MITCHELL FORD
October 11, 2007; As America's mortgage markets began unraveling this year, economists seeking explanations pointed to "subprime" mortgages issued to low-income, minority and urban borrowers. But an analysis of more than 130 million home loans made over the past decade reveals that risky mortgages were made in nearly every corner of the nation, from small towns in the middle of nowhere to inner cities to affluent suburbs.

http://online.wsj.com/article/SB119205925519455321.html?mod=hpp_us_whats_news

Is WaMu the Next Countrywide?

By Philip van DoornTheStreet.com Ratings Bank Analyst8/22/2007 5:39 AM EDT

Countrywide Financial (CFC - Cramer's Take - Stockpickr) isn't the only big bank threatened by the deepening real estate crisis.
An analysis of the largest 20 banks and thrifts by TheStreet.com Ratings shows that four institutions are under-reserved for possible credit losses, a red flag as the economy slows and mortgage defaults rise.
Perhaps more troubling, the numbers show that one of those institutions -- Washington Mutual (WM - Cramer's Take - Stockpickr) -- could join Countrywide in facing serious liquidity problems as worries about the housing and mortgage markets multiply.

http://www.thestreet.com/_htmlbtb/newsanalysis/ratings/10375529.html

There is a chart at the bottom of the 20 banks they analysed.