Washington Mutual Inc., Seattle, has agreed to sell its WM Advisors Inc. subsidiary to the Principal Financial Group, Des Moines, Iowa, for $740 million in cash.The sale is expected to generate a pretax gain for WaMu of at least $650 million. WaMu said the gain is expected to more than offset the financial impact of the sale of $140 billion in mortgage servicing rights (its government servicing portfolio and part of its conforming portfolio) to Wells Fargo Home Mortgage, Des Moines, as well as offset other strategic initiatives the company is undertaking. "This transaction is in keeping with our strategy to streamline our business model and sharpen the focus of our products and services, which target U.S. middle-market consumers and small businesses," said Kerry Killinger, chairman and chief executive of WaMu.
-
The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
37m ago -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
4h ago -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
7h ago -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
9h ago -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
9h ago -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24