WaMu Touts Sales of 1/4-Coupon MBS

Washington Mutual Inc., Seattle, has announced that year-to-date sales by its subsidiaries of Fannie Mae 1/4-coupon mortgage-backed securities have exceeded $10 billion.The 1/4 coupon MBS -- coupons that can be denominated in 1/4-percentage-point increments such as 6.25% rather than 1/2-point increments -- "more closely aligns the MBS coupon with the rate on the underlying mortgage loans, resulting in greater predictability for prepayment speeds," WaMu said. Marito Domingo, executive vice president of capital markets in WaMu's Home Loans and Insurance Services Group, termed the greater acceptance of such coupons "a tremendous development" that indicates "the capital markets are ready to evolve toward more efficient MBS execution." WaMu said the ability to sell MBS in smaller increments also permits "easier management of excess servicing fees and, ultimately, a servicer's mortgage servicing rights." The company can be found online at http://www.wamu.com.