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Chase: Two-Thirds of WaMu Mortgages Impaired

By Implode-Explode Heavy Industries

``Chase said two-thirds of the $173.5 billion in mortgages picked up via its acquisition of Washington Mutual assets were deemed ?impaired,? per the Seattle Times. That?s $116.7 billion in bad loans, though Chase said it has already written down their value to $88.8 billion. A hefty 82 percent of the pay option arms are considered impaired, while 80 percent of subprime loans and two-thirds of home equity loans share that distinction. Chase expects $32.5 billion in total losses on the WaMu home loan portfolio, though that number could rise to as much as $40 billion if home prices fall more than expected.''

Full post as published by Mortgage Lender Implode-o-Meter on March 22, 2010 (boomark / email).