$26M settlement reached in WaMu mortgage securities suit
Purchasers of some WaMu mortgage-backed securities will share $26 million in a settlement of one of the remaining suits over the failed thrift's actions during the mortgage bubble.
Seattle Times business reporter
Purchasers of some mortgage-backed securities (MBS) sold by Washington Mutual at the height of the mortgage frenzy will share in a $26 million settlement, under a deal reached this week.
The agreement, filed in U.S. District Court in Seattle, settles one of the remaining securities-fraud suits filed over WaMu's actions during the mortgage bubble, which ultimately led to the Seattle-based thrift's demise in the nation's biggest bank failure.
The settlement covers buyers of 13 MBS series issued by WaMu Asset Acceptance and WaMu Capital in 2006 and 2007.
The plaintiffs, led by Doral Bank of Puerto Rico, the Boilermakers National Annuity Trust, and the Chicago Policemen's Annuity and Benefit Fund, alleged that the offering documents for the MBS contained false and misleading statements about WaMu's credit policies and underwriting practices.
The two WaMu units, as well as four former WaMu executives named in the suit, agreed to the settlement despite denying any liability for the plaintiffs' losses on their securities.
The deal must be formally approved by District Judge Marsha Pechman. A hearing date has not yet been set.
Drew DeSilver: 206-464-3145 or firstname.lastname@example.org