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Washington Mutual Home Equity Loans

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Chris of Bradenton, FL March 28, 2008

Though they are written providing notice, WAMU has now begun reducing lines in FL. I received notice this week basing the decision on a significant decline in the value of my property. However, how significant is defined cannot be determined, since WAMU, through their loan care center in TX, stated that they will not provide the updated value they are relying on to make this decision. Do I not smell a regulatory compliance issue here? The language included in my orig. loan documents define the basis of a significant decline as the value they relied on at the time of application - which was never provided to me as the borrower. Again, misleading.

In addition, should you want to dispute this action, you as the customer, are required to pay for the cost of a full appraisal, which would cost 200-300. Once again, a requirement that was never included or stated in the original loan documents. Is WAMU possibly making these rules up as they go? And none of this is helping those WAMU borrowers who are and have faithfully met their obligations to WAMU without issue. In fact, you are likely being double penalized because as they reduce your line, your utilization rate effectively increases which will likely have an unfavorable impact on your overall credit score. Nice. Beware - folks, things with WAMU are not as they may seem. Make their primary regulator, the Office of Thrift Supervision, aware of it. Send your issue(s) regarding WAMU to The Office of Thrift Supervision Consumer Affairs Department.

Reduced Credit Line w/o warning, and not supported by any documentation to show action warranted within the terms of the original contract, and negative impact to a consumer's credit score w/o any negative action whatsoever by the consumer.

Ivalee of Bohemia, NY January 29, 2008

My 85 year old father wanted some information on a loan that he would be eligible for so that he could make repairs on his home. Washington Mutual talked him into taking out an 150,000 equity line of credit on his home. He did not request this high of an amount. My father had cataracts which prevented him from reading the documents he signed at the bank. In October of 2007, my father passed away and in his will left his estate to his eldest son (who is handicapped), his daughter and 3 grandchildren. Upon learning of this loan and contacting Washington Mutual, it was learned that we had to sell his home and payoff this loan. My father had no income to pay back this loan to begin with and if they had done a credit check or the like, Washington Mutual would have known that my father wasn't eligible for such a high loan amount.

Due to this situation the family is forced to sell the home and it is extremely difficult to relocate 3 grandchildren ages 9,17, and 20 also the handicapped adult can not survive on his own when there is no money left after the sale of said home. His ability to hold employment is limited due to the extent of his disability. I also am currently out of work on disability and cannot support my brother. I could at least maintain the existing home if that loan didn't exist.

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