washington mutual http://michiganradio.org en Sen. Levin accuses mortgage lenders of "greed and deception" http://michiganradio.org/post/sen-levin-accuses-mortgage-lenders-greed-and-deception <p><a href="http://platform.publicbroadcasting.net/michigan/media/docs/senatewallstreetreport.pdf">A new report</a> lays the blame for much of Detroit&rsquo;s foreclosure problems at the feet of one of the nation&rsquo;s largest mortgage lenders.&nbsp;</p><p>In 2003, Washington Mutual Bank&rsquo;s CEO said he wanted to turn his bank into<a href="http://en.wikipedia.org/wiki/Washington_Mutual"> &ldquo;the Wal-Mart of Banking.&quot;&nbsp; </a>His plan was to focus on low and moderate income borrowers deemed &ldquo;too risky&rdquo; by other lenders.&nbsp;</p><p>By 2008, federal regulators seized Washington Mutual and the company filed for bankruptcy protection.&nbsp;</p><p>What happened?&nbsp;</p><p>Washington Mutual had taken major losses in the subprime loan market.&nbsp; Its subsidiary, Long Beach Mortgage Corporation was for a time the second biggest subprime mortgage lender in Detroit.&nbsp; Between 2005 and 2007, more than half of those loans ended in foreclosure.</p><p>Michigan U.S. Senator Carl Levin says Washington Mutual&rsquo;s subprime loan practices &ldquo;devastated&rdquo; neighborhoods and families in Detroit.&nbsp; At the end of a year long investigation, Levin&rsquo;s released a report blaming reckless lending and lax federal oversight for the near collapse of the nation&rsquo;s banking system in 2008. Thu, 14 Apr 2011 05:01:01 +0000 Steve Carmody 2070 at http://michiganradio.org Sen. Levin accuses mortgage lenders of "greed and deception"