WaMu's Mortgage Profits Plunge

The net income of Washington Mutual Inc.'s mortgage segment plunged from $323 million in the first quarter of 2005 to $38 million in the first quarter of this year, although profits rose overall, the Seattle-based thrift has reported.WaMu attributed the nosedive in the Home Loans Group's profits to higher short-term interest rates and a flat yield curve, which produced a decline in net interest income and a significant increase in the cost of risk management for mortgage servicing rights. Originations of home loans were actually higher, at $44.998 billion, than they were in the first quarter of 2005, when they totaled $44.495 billion. Overall, WaMu reported net income of $985 million ($0.98 per share) for the first quarter, up from $902 million ($1.01 per share) a year earlier. WaMu can be found online at http://www.wamu.com.