OTS Eyeing WaMu, Others on Appraisals

Allegations that Washington Mutual's appraisal practices may have led to inflated property values have prompted the Office of Thrift Supervision to start a review of WaMu and the appraisal practices of other thrifts, according to an OTS spokeswoman."I don't know if it would be fair to say we are singling [WaMu] out," said Barbara Shycoff, the OTS's external affairs director. The OTS decided it is a "good time" to look at WaMu and other thrifts to make sure that "we are comfortable with the practices out there," she said. The Seattle-based thrift maintains that the allegations of pressuring appraisers -- first raised by New York Attorney General Andrew Cuomo in November -- are without merit. "After spending a month and a half investigating these allegations, we can say with confidence that there has been no systematic effort by WaMu to inflate home appraisals," the company said in a recent statement. WaMu also disclosed in the Dec. 21 statement that the Securities and Exchange Commission and the OTS are reviewing its appraisal practices.