Wachovia Layoff

I have been lurking for about a year now...since the first layoff in August 07. Last Friday was my go home early day. Monday I woke up and didn't even think about work. Is it strange that I feel disconnected from WB already? I mean...we did know this was coming for months and had time to prepare mentally. I just feel so much peace for those of us who are finally gone. It's like that final 10 pounds has finally dropped off and we can all get on with our lives.

I will miss seeing all my co-workers everyday.GW was one of a kind. It wasn't like some companies where if they had multiple offices the workers didn't know each other. Between filling in at other offices, training classes, kick off meetings and phone conversations we got to know and love our "extended family" outside of your own offices. And the same goes for our "out of state family". It just seemed no matter where you called there was a familar voice on the other end. Think of how blessed we were to wake up everyday and come to work because you loved the company and co-workers...and looked foward to being there.

Legacy WB people will NEVER experience that....it's very sad. They think "this is how Corporate America is". I bet if WB is ever bought out they are going to wish they worked for a company like GW that looked out for it's employees...because the WB package is not worth the paper it's written on.

Future uncertain but strangely at peace in Content, California said: I have been lurking for about a year now...since the first layoff in August 07. Last Friday was my go home early day. Monday I woke up and didn't even think about work. Is it strange that I feel disconnected from WB already? I mean...we did know this was coming for months and had time to prepare mentally. I just feel so much peace for those of us who are finally gone. It's like that final 10 pounds has finally dropped off and we can all get on with our lives.

I will miss seeing all my co-workers everyday.GW was one of a kind. It wasn't like some companies where if they had multiple offices the workers didn't know each other. Between filling in at other offices, training classes, kick off meetings and phone conversations we got to know and love our "extended family" outside of your own offices. And the same goes for our "out of state family". It just seemed no matter where you called there was a familar voice on the other end. Think of how blessed we were to wake up everyday and come to work because you loved the company and co-workers...and looked foward to being there.

Legacy WB people will NEVER experience that....it's very sad. They think "this is how Corporate America is". I bet if WB is ever bought out they are going to wish they worked for a company like GW that looked out for it's employees...because the WB package is not worth the paper it's written on.

I really like your post, I felt the same way also when I was let go. I was relieved yet also with that comes a big letdown later. It's like a death in the family, you have your stages of grief. You have to pick yourself up and move on to a different place. The really nice feature about world was the support we received. It was great. Take care and good luck to you.

Wachovia to cut more mortgage jobs
www.charlotteobserver.com/business/story/120684.html
excerpts:
The company now plans to eliminate 5,000 of its 11,500 mortgage posts, about 43 percent of the workforce. With the latest cuts, Wachovia will have eliminated about 8,100 mortgage jobs, including attrition, since the deal closed. Those cuts have affected employees from both companies, but Golden West workers have taken the brunt of the fallout.
<<< So roughly 4,000 World peeps left.

Closing the mortgage offices is part of the bank's strategy to “enhance customer relations” in locations where the bank also has bank branches, Vecchiarello said. Wachovia has branches in 21 states from Connecticut to California.
<<< "Enhance" my a$$

Vecchiarello emphasized the bank is still offering a full line of mortgage products through branches and mortgage offices in 18 states and to a broader customer base through its Web site and call centers. <<< A "Full Line" of Sh!+ is what that is. Used to lend in 3/4 of the US - Now only 1/3 of US - with pricing that is a joke with products no on wants.

In states where Wachovia has branches, Vecchiarello said, the bank continues to have a dual sales force – mortgage consultants based in mortgage offices who work on commission as well as branch-based consultants who receive a salary. Wachovia's head of retail mortgage sales, Scott Fisher, is evaluating this structure, Vecchiarello said. <<< ALL soon to be replaced by a call center.

world in ROY MUNSON IN SD, California said: IT'S OVER, no offense but why do appraisers (World appraisers are the best) keep wondering about their jobs. The idiot company that bought us is no longer doing loans, stop wondering if you still have a job, and hope they release you before the severance date. Wholesale (the majority of business) and retail are over, are you seriously hoping you can stick around to do REO for the next 5 months and then get let go (without severance, or Wachovia's crappy severance). The big shots are at work (as we speak) to sell off (or try to, at 45 cents on the dollar) the remainder of our portfolio. There are too many appraisers on this board wondering whats going to happen, if you cant see the writing on the wall, something is wrong, be blessed you have worked for one of the best companies and are some of the best appraisers in the field.

Roy Munson in SD CA-

No offense taken, but think about it. Why are wondering if we still have jobs? Well, because unlike origination, underwriting and processing.......we still do. Clearly the difficulty for the appraisers is the ANTICIPATION of being displaced. Many appraisers I know have not only resigned themselves to the fact that they will be displaced, but upon further reflection believe it is probably the best thing for them in the long run. This is in part due to the fact that appraisers have a lot more flexibility professionaly speaking to do work that has nothing to do with mortgage lending. Perhaps a decent severance will be just what is needed to begin an appraisal practice where lender work is only one stream of a diversified practice. This is good news. Thank you WB for pushing is out into the world where many more opportunities abound to grow professionaly and financialy.

Article on trend to short Wachovia -

www.bloomberg.com/apps/news?pid=20601087&sid=a57Gqx3lxcc4&refer=home

Phyllis Mangina in Witness Protection Program, Costa Rica said: Wachovia to cut more mortgage jobs
www.charlotteobserver.com/business/story/120684.html
excerpts:
The company now plans to eliminate 5,000 of its 11,500 mortgage posts, about 43 percent of the workforce. With the latest cuts, Wachovia will have eliminated about 8,100 mortgage jobs, including attrition, since the deal closed. Those cuts have affected employees from both companies, but Golden West workers have taken the brunt of the fallout.
<<< So roughly 4,000 World peeps left.

Closing the mortgage offices is part of the bank's strategy to “enhance customer relations” in locations where the bank also has bank branches, Vecchiarello said. Wachovia has branches in 21 states from Connecticut to California.
<<< "Enhance" my a$$

Vecchiarello emphasized the bank is still offering a full line of mortgage products through branches and mortgage offices in 18 states and to a broader customer base through its Web site and call centers. <<< A "Full Line" of Sh!+ is what that is. Used to lend in 3/4 of the US - Now only 1/3 of US - with pricing that is a joke with products no on wants.

In states where Wachovia has branches, Vecchiarello said, the bank continues to have a dual sales force – mortgage consultants based in mortgage offices who work on commission as well as branch-based consultants who receive a salary. Wachovia's head of retail mortgage sales, Scott Fisher, is evaluating this structure, Vecchiarello said. <<< ALL soon to be replaced by a call center.

yes, they are going back to "the way they were", incomprehensible product code sheets" and uncompetitive rates and products, and using the pick a pay as an excuse to eliminate personnel. The leftover gdw personnel will probably be in the branches as tellers.

Nasty Wach in Miami, Florida said: yes, they are going back to "the way they were", incomprehensible product code sheets" and uncompetitive rates and products, and using the pick a pay as an excuse to eliminate personnel. The leftover gdw personnel will probably be in the branches as tellers.

Heh. The way things seem to be going, there won't be any leftover GDW people. Cuts are increasing, and the PAP is still being blamed.

Steel's plan is still on target.

Morgan Stanley, along with JPMorgan Chase & Co. and Wachovia Corp., received letters from Cuomo's office Monday notifying the trio their sales of auction-rate securities were being investigated.

Full article
www.forbes.com/feeds/ap/2008/08/12/ap5312869.html?partner=alerts

Nice to see SOMEONE finally acknowledge that Wachovia's problems stretch far and wide throughout their entire business -and are not just limited to and because of World's PAP. Finally reporting by someone who isn't drinking Wachovia's Kool-Aid. WSJ, AP, Reuters, Charlotte Observer are you listening?

Wachovia Revises Q2 Loss Downward, Ups Mortgage Job Cuts
www.housingwire.com/2008/08/12/wachovia-revises-q2-loss-downward-ups-mortgage-job-cuts/

For the second straight quarter, North Carolina-based Wachovia Corp. (WB: 16.71 -8.24%) revised a quarterly loss and said it lost more money than originally estimated; in this case, the revision was tied to a possible legal settlement of auction-rate-securities claims with state and federal regulators, according to a late Monday filing with the Securities and Exchange Commission.

The bank is now reporting a Q2 loss of $9.11 billion to cover costs of a possible $500 million settlement, or a $4.31 per share loss, up from the $8.86 billion loss, or $4.20 per share, originally reported when the bank first released its second quarter results on July 22.

In the first quarter, Wachovia had increased its reported loss to $708 million from an original $393 million because of a write-down tied to life insurance policies.

***** The ongoing woes at Wachovia underscore a widespread set of problems for the bank that go well beyond its problematic exposure to the U.S. housing market — although that’s also a key source of pain, as well. *****

Phyllis Mangina in Witness Protection Program, Costa Rica said: Wachovia to cut more mortgage jobs
www.charlotteobserver.com/business/story/120684.html
excerpts:
The company now plans to eliminate 5,000 of its 11,500 mortgage posts, about 43 percent of the workforce. With the latest cuts, Wachovia will have eliminated about 8,100 mortgage jobs, including attrition, since the deal closed. Those cuts have affected employees from both companies, but Golden West workers have taken the brunt of the fallout.
<<< So roughly 4,000 World peeps left.

I think 4000 would be very generous. World had about 11,000 employees when we merged. Once the cuts are complete for origination and appraisal and the rest of the support groups, there will be very few mortgage employees left. The only legacy World employees are the savings employees - so I would guess that there will be around 2500 employees left in the entire company - probably less than 300-500 in the mortgage company.

FlyOnTheWall in Secret said:

I was estimating perhaps 4K legacy world remaining NOW.

When Wachovia finishes this Charlie Foxtrot very few Legacy World will be left. A handful will succesfully make the cut in retail lending as MC/MCB's. Very few from World Origination management will successfully transaition to Wach management roles. A handful of appraisal peeps just because you need reviewers and someone to manage them. 100 or so peeps in San Antonio that know where the bodies are buried.

I would venture that perhaps 500 World Mortgage peeps are left 1 year form now.

Phyllis Mangina in Witness Protection Program, Costa Rica said: I was estimating perhaps 4K legacy world remaining NOW.

When Wachovia finishes this Charlie Foxtrot very few Legacy World will be left. A handful will succesfully make the cut in retail lending as MC/MCB's. Very few from World Origination management will successfully transaition to Wach management roles. A handful of appraisal peeps just because you need reviewers and someone to manage them. 100 or so peeps in San Antonio that know where the bodies are buried.

I would venture that perhaps 500 World Mortgage peeps are left 1 year form now.

The San Antonio Campus will likely be closed soon. They can run the whole operation out of one of the other locations. They can lease the Campus to someone else.

Things "They" said would never happen:

* Eliminate PAP and Portfolio

* Shutdown World Wholesale

* Shutdown ROCs

* Exit Retail Lending

* Shutdown San Antonio Campus

Loan workouts good for you and the bank?

www.marketwatch.com/news/story/loan-workouts-good-you-bank/story.aspx?guid=%7BFDF239AD%2DFA65%2D4A61%2D929B%2D444139AB4D76%7D&siteid=yhoof

Forget the intro about NACA - here's the takeaway and it doesn't bode well:

Wachovia Corp. (WB:16.03, -2.18, -12.0%) , smaller than B. of A. but also based in Charlotte, N.C., said that roughly $1.5 billion out of its $7 billion of nonperforming assets are modified loans.
The large chunk of modified loans on banks' books these days is nothing new. But Wachovia recently provided a glimpse of how these loans actually are performing, putting the glass half-full.
"Our experience has been reasonably good in that 50% of these modified loans remain current with their modified terms after about six months," said its chief risk officer, Donald Truslow, who will retire once a successor is named.
But analysts say Truslow is highlighting that half of those on modified loans are not keeping up with their payments, and that such a high percentage could reflect trends in the industry.

Dangling by a thread in Recession Town said: Roy Munson in SD CA-

No offense taken, but think about it. Why are wondering if we still have jobs? Well, because unlike origination, underwriting and processing.......we still do. Clearly the difficulty for the appraisers is the ANTICIPATION of being displaced. Many appraisers I know have not only resigned themselves to the fact that they will be displaced, but upon further reflection believe it is probably the best thing for them in the long run. This is in part due to the fact that appraisers have a lot more flexibility professionaly speaking to do work that has nothing to do with mortgage lending. Perhaps a decent severance will be just what is needed to begin an appraisal practice where lender work is only one stream of a diversified practice. This is good news. Thank you WB for pushing is out into the world where many more opportunities abound to grow professionaly and financialy.

I agree that it's the anticipation that is killing us. I just want to know when it's going to be over so I can move on to bigger and better things. I hope they offer the choice to take the package if they do plan to keep a few of us around. I will take the package without a second thought.

if you think the worst is behind us - guess again - the fun is only beginning:

Subprime and Alt-A: The End of One Crisis and the Beginning of Another
calculatedrisk.blogspot.com/2008/08/subprime-and-alt-the-end-of-one-crisis.html

Another World in Somewere, California said: Morgan Stanley, along with JPMorgan Chase & Co. and Wachovia Corp., received letters from Cuomo's office Monday notifying the trio their sales of auction-rate securities were being investigated.

Full article
www.forbes.com/feeds/ap/2008/08/12/ap5312869.html?partner=alerts

This sounds very ominous for wachovia. Ouch!

Phyllis Mangina in Witness Protection Program, Costa Rica said: Nice to see SOMEONE finally acknowledge that Wachovia's problems stretch far and wide throughout their entire business -and are not just limited to and because of World's PAP. Finally reporting by someone who isn't drinking Wachovia's Kool-Aid. WSJ, AP, Reuters, Charlotte Observer are you listening?

Wachovia Revises Q2 Loss Downward, Ups Mortgage Job Cuts
www.housingwire.com/2008/08/12/wachovia-revises-q2-loss-downward-ups-mortgage-job-cuts/

For the second straight quarter, North Carolina-based Wachovia Corp. (WB: 16.71 -8.24%) revised a quarterly loss and said it lost more money than originally estimated; in this case, the revision was tied to a possible legal settlement of auction-rate-securities claims with state and federal regulators, according to a late Monday filing with the Securities and Exchange Commission.

The bank is now reporting a Q2 loss of $9.11 billion to cover costs of a possible $500 million settlement, or a $4.31 per share loss, up from the $8.86 billion loss, or $4.20 per share, originally reported when the bank first released its second quarter results on July 22.

In the first quarter, Wachovia had increased its reported loss to $708 million from an original $393 million because of a write-down tied to life insurance policies.

***** The ongoing woes at Wachovia underscore a widespread set of problems for the bank that go well beyond its problematic exposure to the U.S. housing market — although that’s also a key source of pain, as well. *****

We have been saying this all along. But no, it's the pick a pay from little old World Savings that has caused their problems via the wachovia/charlotte observer rhetoric. What a hell of a smoke screen they put up. I think the time is come that the truth be told and it is coming. Nice post!!

Phyllis Mangina in Witness Protection Program, Costa Rica said: Things "They" said would never happen:

* Eliminate PAP and Portfolio

* Shutdown World Wholesale

* Shutdown ROCs

* Exit Retail Lending

* Shutdown San Antonio Campus

I think that all above points were in the game plan from day 1! Don't you?

Nasty Wach in Miami, Florida said: I think that all above points were in the game plan from day 1! Don't you?

Yes, despite "Their" earnest reassurances of commitment to the World franchise.

This typifies the cluelessness that comes from Wachovia management:
bigpicture.typepad.com/photos/uncategorized/2008/08/12/then_something_bad_happened.jpg

Nasty Wach in Miami, Florida said: I think that all above points were in the game plan from day 1! Don't you?

Nope. KT and his cronies LOVED the PAP. They salivated over you lot to the point of being rather disgusting. I believe they expected to enjoy the same "success" World had with it. The timing however, stank to the heavens. And though the acquisition of WS and all it's glory is clearly not the only unfortunate and costly decision made within the corporation to date, one can hardly dispute that the additional exposure and expense is something Wachovia (and you people) would have been better off without.

Since it has been a few pages since someone has mentioned how the Sandlers would never treat us this way, I find it time to bring that matter back up again. True during their ownership of the company they treated employees fair and square and there was no layoffs regardless of the economy, and I know we all still chuckle at the old review times and hearing "Its World Savings, not World Spending", but the point I want to make is this. Where are they now? We all have heard that they were so disgusted by what Wachovia has done they stopped attending the board meetings and etc.. But what are they doing with all that money? We all have heard about their new headquarters over in San Fran and that they are doing all these great charity things, but does anyone actually know what charities and where? Just food for thought, I think the disconnection has been made.

And yes I know I will get slack for the above comments, and yes I am legacy Golden West and have been there for close to 10 years. So I do know what I am talking about......we should have saved all those $25 Gift Checks and made a counter offer 2 years ago.

califonia native in anywhere, California said: Even a salary plus bonus is acceptable. I have heard that World paid the MC that way but it is not so. It was often only 3 months and then out. If they brought in some deals then they were kept on with their TSS.

So you weren't with World for very long before the merger were you? Back in the day, all reps were salary plus bonus. We had CLO's, CLR's, PMB's, and the good 'ole GEO's. >Brings back memories, doesn't it< All were origination positions of some variety, and all were salaried. It wasn't until around (??) 4 yrs ago when they brought in the whole retail side that anyone was straight commission with World.

Kool-Aid Spitter in Oakland, California said: Since it has been a few pages since someone has mentioned how the Sandlers would never treat us this way, I find it time to bring that matter back up again. True during their ownership of the company they treated employees fair and square and there was no layoffs regardless of the economy, and I know we all still chuckle at the old review times and hearing "Its World Savings, not World Spending", but the point I want to make is this. Where are they now? We all have heard that they were so disgusted by what Wachovia has done they stopped attending the board meetings and etc.. But what are they doing with all that money? We all have heard about their new headquarters over in San Fran and that they are doing all these great charity things, but does anyone actually know what charities and where? Just food for thought, I think the disconnection has been made.

They owe us nothing...Get over it..If YOU ran a company for 40 years, made money and took care of your employees on the way out, what else could anyone ask for? The Sandlers owe us nothing. They are intelligent people that made alot of money. Good for them. They gave me a great job, friends, family and most of all a career. I hope they are going on vacation and having a blast!! Maybe they have a bucket list? Who knows and who cares...

Sorry to say I was salary the entire time, no luxury of bonuses.

Was not saying they owe us anything, just wondering where they are?

Kool-Aid Spitter in Oakland, California said: Since it has been a few pages since someone has mentioned how the Sandlers would never treat us this way, I find it time to bring that matter back up again. True during their ownership of the company they treated employees fair and square and there was no layoffs regardless of the economy, and I know we all still chuckle at the old review times and hearing "Its World Savings, not World Spending", but the point I want to make is this. Where are they now? We all have heard that they were so disgusted by what Wachovia has done they stopped attending the board meetings and etc.. But what are they doing with all that money? We all have heard about their new headquarters over in San Fran and that they are doing all these great charity things, but does anyone actually know what charities and where? Just food for thought, I think the disconnection has been made.

I have read several articles about the Sandlers in the LA Times, etc. in the past year and in it they did state that if I remember correctly they kept about 11 mil and the rest was given to the different charities they had particular interest in and of course the investigative publication that was started in January, ProPublica. I can't recall the charities specifically at this point in time but I do remember thinking that they were very good choices and I thought that were not being selfish, they are after all entitled to what they did keep. They wroked long and hard to make World Savings one of the highly respected on Wall Street and they did make sure that package they felt was fair was included in the sale! They don't owe anybody anymore!!!!

Again the point is missed of the post, thanks to "been there. done that" for stating that there was charities and so forth and that they were published. Yes they are entitled to every penny they got and yes their enhanced severance package was more then anyone could ask for (though who watches that pot now is in question).

My department was pulled into a quick huddle this morning to tell us that Loan Mods and Records Management were being given their walking papers this morning. We were basically being told to be respectful of their feelings because it is a difficult time and although there are some who are happy to be be laid off the other's are choked up. so to speak.

Douglas Do Right in Sin City, Alaska said: My department was pulled into a quick huddle this morning to tell us that Loan Mods and Records Management were being given their walking papers this morning. We were basically being told to be respectful of their feelings because it is a difficult time and although there are some who are happy to be be laid off the other's are choked up. so to speak.

What's your dept?

Time To Move On in Irvine, California said: What's your dept?

The Loan Resolution Center.

Wach keeps reporting huge losses in their mortgage division but I wonder if thats a huge smoke screen as well. WSL recognized foreclosure losses when the were actually losses but Wach estimates losses.

I wonder how much the balance sheet will grow when this decline in home values stops and appreciation begins again I would bet at least a quarter of the estimated loss comes back on the balance sheet every quarter until Wachs profit is growing again at a very fast pace and we go back to the spending ways of norm.

Of course they will earning pennies on the dollar for every loan they make rather than hundreds per loan due to their short sightedness in not continuing to lend using the straight arm or bi-weekly(notice I didn't say PAP) like in the old days. They could have changed LTV to 60 or 65 for certain loan amounts or increase the margin to make the ARM(Adjustable Rate Mortgage) for those of you less savvy on mortgage lingo, less risky for Wach and still made ARM's available to the savvy individuals who understood the arm but NO the board decided to get rid of the individuals who understood how to make a portfolio work for you as a company rather than against.
As for the future of Wach I see it becoming part of either an investment firm or another bank willing to take on the legal messes that Wachs board of directors and executives have allowed to take place because they have no control over leaders at any level nor do they care until the company is sued by the government regulators or a poor customer.

Just my thoughts.

nate graves in Tennessee said: Wach keeps reporting huge losses in their mortgage division but I wonder if thats a huge smoke screen as well. WSL recognized foreclosure losses when the were actually losses but Wach estimates losses.

I wonder how much the balance sheet will grow when this decline in home values stops and appreciation begins again I would bet at least a quarter of the estimated loss comes back on the balance sheet every quarter until Wachs profit is growing again at a very fast pace and we go back to the spending ways of norm.

Of course they will earning pennies on the dollar for every loan they make rather than hundreds per loan due to their short sightedness in not continuing to lend using the straight arm or bi-weekly(notice I didn't say PAP) like in the old days. They could have changed LTV to 60 or 65 for certain loan amounts or increase the margin to make the ARM(Adjustable Rate Mortgage) for those of you less savvy on mortgage lingo, less risky for Wach and still made ARM's available to the savvy individuals who understood the arm but NO the board decided to get rid of the individuals who understood how to make a portfolio work for you as a company rather than against.
As for the future of Wach I see it becoming part of either an investment firm or another bank willing to take on the legal messes that Wachs board of directors and executives have allowed to take place because they have no control over leaders at any level nor do they care until the company is sued by the government regulators or a poor customer.

Just my thoughts.

Very good points made.....I totally agree with you!

Was anyone else on this board given bad news today or was it just in S.A.? We have been told that we are okay because we are in the default area. I think that we maybe good for now but it's all going to come to an end eventually. Wachovia will never be nor do they want to be a big shot in the mortgage business. I can see where we will be saying so long in about a year or less.

Douglas Do Right...I don't think that was a smart move telling everyone what department you are in. There are operatives on this board who may track you down. I'd just be carefull about what you say. I spoke to a girl who works in the HR Department and she says that they are short staffed..go figure. They are calling back a lot of the HR staff that was let go yet they are laying off workers. I thought that was odd. I haven't heard anything about the areas you mentioned Mr. Do Right. I did hear that there will be others announced this week. I'm not sure if it is going to be in your town or mines.
I guess we will all have to wait and see.

Any one thinking of changing professions completely?

Unconfirmed report that FD has their meeting tomorrow morning.

Lexar you may be right. After I posted my department the person who asked hasn't put a comment since I answered. Maybe they are one of my managers...lol oh well. Our department is pretty big and at this point it is common knowledge that nothing that is said or done is a secret. I think the powers that be know exactly how everyone feels.
I've thought about going over to the banking side and working in the back office. I have thought about going back to school but I'm in my early forties and I'm not thrilled about the school thing but if it comes to that I will. I would hope that my degree although not in business would help me get somewhere.

Kool-Aid Spitter in Oakland, California said: Unconfirmed report that FD has their meeting tomorrow morning.

If it's unconfirmed, don't report it!

Douglas Do Right in Sin City, Alaska said: ... I have thought about going back to school but I'm in my early forties and I'm not thrilled about the school thing but if it comes to that I will.....

Ah, you're still a pup.. ;)

Kool-Aid Spitter in Oakland, California said: Unconfirmed report that FD has their meeting tomorrow morning.

Well I have a feeling that the report will be confirmed tomorrow morning. There isn't a stack of loans for them to Q.C. Last I heard a few weeks ago, they were put on the 3 or 4 day workweek schedule.

We got a memo today that all high quality stated income/stated asset programs are gone as of Friday the 15th. This was due to whoever they sell the loans to only wanted full doc...so now if you're self-employed you better not write anything off or paying for your house in cash. These people have no clue about loans...

nate graves in Tennessee said: Wach keeps reporting huge losses in their mortgage division but I wonder if thats a huge smoke screen as well. WSL recognized foreclosure losses when the were actually losses but Wach estimates losses.

I wonder how much the balance sheet will grow when this decline in home values stops and appreciation begins again I would bet at least a quarter of the estimated loss comes back on the balance sheet every quarter until Wachs profit is growing again at a very fast pace and we go back to the spending ways of norm.

Of course they will earning pennies on the dollar for every loan they make rather than hundreds per loan due to their short sightedness in not continuing to lend using the straight arm or bi-weekly(notice I didn't say PAP) like in the old days. They could have changed LTV to 60 or 65 for certain loan amounts or increase the margin to make the ARM(Adjustable Rate Mortgage) for those of you less savvy on mortgage lingo, less risky for Wach and still made ARM's available to the savvy individuals who understood the arm but NO the board decided to get rid of the individuals who understood how to make a portfolio work for you as a company rather than against.
As for the future of Wach I see it becoming part of either an investment firm or another bank willing to take on the legal messes that Wachs board of directors and executives have allowed to take place because they have no control over leaders at any level nor do they care until the company is sued by the government regulators or a poor customer.

Just my thoughts.

yes,good points. BTW, Herb Sandler has been saying that about the loss estimates being way too high.

wachoviablank in Hayward, California said: We got a memo today that all high quality stated income/stated asset programs are gone as of Friday the 15th. This was due to whoever they sell the loans to only wanted full doc...so now if you're self-employed you better not write anything off or paying for your house in cash. These people have no clue about loans...

I'm not surprised. They feel that they are risky and they basically want a deal that they know is rock solid. Little do they know a person may have a score in the 700's today and by next week they may find they have no job, no savings and no way to pay all of their bills. Does anyone know if Wach's way of underwriting is similar to World's? I'm sure that it isn't but I just want it to be confirmed. I've read some of the post and I was just curious as to how Wach's underwriting process differs from World's.