WaMu Reports 2Q Profits, Home Loan Loss

Washington Mutual Inc., Seattle, has reported net income of $830 million ($0.92 per share) for the second quarter, up from $767 million ($0.79 per share) a year earlier, although its Home Loans group recorded a net loss.The Home Loans group took a loss of $37 million in the second quarter, compared with a net loss of $113 million in the first quarter and net income of $50 million a year earlier, WaMu said. "Net losses from the sales of subprime mortgage loans and adjustments to reflect changes in market values of loans held for sale totaled $38 million, which was a substantial improvement from net losses of $164 million in the first quarter," the company said. Prime mortgage volume rose 7% in the second quarter, while subprime mortgage production declined 30% from that of the first quarter. WaMu can be found online at http://www.wamu.com.