WaMu Scraps 'Buy & Build' Strategy

Washington Mutual, Seattle, which has been on an intense "buy-and-build" spree the past three years, is now officially taking a respite from any major acquisitions.During a speech this week at the annual convention of America's Community Bankers, WaMu chief executive Kerry Killinger indicated that WaMu will build its base of branches de novo instead of through acquisitions. For the past nine months, WaMu watchers have been saying that the mega-thrift -- the nation's largest residential servicer -- has been on the sidelines when it comes to buying other firms. Then again, the mortgage-related mergers-and-acquisitions market has been slow the past half-year, with few exceptions. (In August, WaMu agreed to buy HomeSide's huge servicing portfolio, but that deal had been anticipated for a year.) In fact, the top 10 residential servicers combined saw their market share slip in the third quarter, the third consecutive decline for the group. (See the Nov. 11 issue of National Mortgage News for full details.)