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WASHINGTON MUTUAL BANK'S GORY AUTOPSY

Link to the full revealing article: WASHINGTON MUTUAL'S GORY AUTOPSY

Published with permission from the author, Rob Harrington. The content of this article reflects the personal opinions of the
author and are not to be construed as legal advice.

WHY IS JP MORGAN CHASE


THE UNLIKELY OWNER
OF ANY WASHINGTON MUTUAL
HOMES LOANS?
SUBMITTED BY

ROB HARRINGTON

NATIONAL WAMU HOMEOWNERS SUPPORT GROUP

Washington Mutual’s Gory Autopsy:


A Disturbing Crime Scene (Part 1)

In, or around 2005, JP Morgan Chase (JPMC) entered “negotiations” with Washington Mutual Bank (WaMu)
to purchase the bank and its various subsidiaries. Years later, substantial information regarding this
questionable business deal between the OTS, FDIC, and JPMC, was provided in great detail in one particular
lawsuit (WaMu Bondholders vs. JPMC and the FDIC(1) (as specifically referred to as the "Texas Complaint"
or "Texas Action.") In 2005, Steve Rotella became the new COO of WaMu. Rotella, a senior long term
executive from JPMC, went to WaMu with other senior level executives, (including John Berens,) to learn
the "WaMu way." This team was sent to provide pre-sale information to JPMC regarding the “potential
purchase” of WaMu. Jamie Dimon admits that he had long coveted WaMu's retail banking foot print,
especially on the West Coast and Southeast of the United States. Moreover, JPMC was also interested in
WaMu's expansive lending operations. WaMu was to become the largest bank failure ever. It was later
alleged in April 2008, at a WaMu shareholder meeting, that Steve Rotella was blamed for the company’s
troubles.
According to the Misery Index blog, 10/17/08, “At a stockholders meeting in April, 2008, a man who
identified himself as a WaMu employee and shareholder laid the blame for the company's troubles
squarely on Stephen Rotella, president and chief operating officer since 2005.”

The general allegations are that a numerous number of other JPMC transplants, who followed Rotella and
Berens in the subsequent years, “ran WaMu off the cliff.” WAS THIS DELIBERATE or ACCIDENTAL -as one
could follow the money many years later?

The National WaMu Homeowners Support Group


(NWHSG) www.nationalwamuhomeownerssupportgroup.com believes upon over 3 years of research with
hundreds of allegedly defrauded WaMu homeowners, JPMC executives (turned WaMu executives) perhaps
intentionally created a fraudulent scheme within WaMu to utilize "lax and irresponsible"
underwriting(2) to built a vast profit center from the mortgage loan business. In this alleged scheme, JPMC
and its related companies, could later control the sale of potentially 100,000's of WaMu’s foreclosed
homes. The NWHSG also discovered that WaMu/JPMC ex-employees(?) had established Home Sales, Inc.
“related” companies around the country, between the years of 2005-2006. Home Sales Inc. of Delaware, is a
“related” company to Chase Home Finance “companies,” yet, another subsidiary of JPMorgan Chase
Bank, N.A.. Homesales Inc. of Delaware would later prove to be a specially chosen REO Disposition
Company of WaMu's successfully foreclosed homes. The peculiar massive number of foreclosed homes
would later be found to be the result, in many instances, of fraudulently underwritten home loans, unfair
and deceptive loan servicing tactics, and questionable legal and property transfer strategies.

Our NATIONAL WAMUHOMEOWNERS SUPPORT GROUP.COM (NWHSG.com) research and other


investigations confirm that50-80% of loans of certain WaMu loan production offices were fraudulently
underwritten - by WaMu's very own employees.(3)

Additionally, WaMu, between 2005 – 2008, underwent a minimum of 12 "internal re-organizations" in less
than 3 years (as described in a audio taped interview by a WaMu mid/upper level executive whistle
blower.) What kind of “leadership” would reorganize more than a dozen times in a 3 year (or so) time
period if NOT to destroy, (or confuse,) the company? During these same years, we are informed by the
whistle blower, that many of the better WaMu employees who cared about the long term success of WaMu,
were replaced by JPMC transplants, mainly mid level to upper level management types.) These ex-JPMC
employees infiltrated WaMu at a rapid rate between 2005 - 2007. The “holy grail” of WaMu during these
years, was to make as many loans as possible, at the highest profit margins, selling highly complex and
inappropriate loan products, regardless of the homeowners’ ablility to repay the debt in the
future.(4) Thusly, the alleged “originate to foreclose” business model was born.

On September 25, 2008, it is well documented that the OTS and the FDIC arranged a highly peculiar sale of
WaMu, and "certain assets" to JPMC, for less than a 1/3 of a penny on the dollar (OTS fact
sheet).(5) (Actually, we think JPMC got WaMu for FREE after Accounting write-offs, tax breaks, BAIL-OUTS,
and other immediately realized windfall profits.) The financial markets journalists all raised a collective
eyebrow about the timing and nature of this staggering, questionable deal.(6) A well organized group of
WaMu shareholders also weighed heavily on the side of conspiracy.(7) The NWHSG maintains that JPMC is
NOT the "successor of interest" of all, or at least virtually 99%(?) of WaMu's home loans from 2002 - 2007.
We believe they only acquired “certain assets” via the FDIC receivership.(8) Additionally, the Delaware
WaMu Bankruptcy Court has not yet been able to conclusively determine which assets JPMC owns as late of
2011, several years after the coup d’etat. (9)

WaMu originated/re-financed approximately (estimate) over 1 Million loans during that same time
period. Upon further research, the NWHSG found evidence of over 100’s of securitized trusts, private
placements, and covered bond deals of WaMu mortgages that directly evidences the SALE of over a million
WaMu loans between 2001 - 2007.(10) (11)

IF WaMu (hypothetically) SOLD over 1 million loans in those same years, than HOW CAN JPMC CLAIM to be
the "successor in interest" or "holder," otherwise known as - THE OWNER of the SAME LOANS? Can there
only be ONE "holder of due course?" The“successor of interest” language from JP Morgan Chase in
10,000’s(?) (or more?) of the WAMU foreclosures is “DISINGENOUS”, at best. Maybe even – “FRAUDULENT?”

LEGALLY, CAN THERE CAN ONLY BE ONE IDENTIFIABLE AND FACTUALLY PROVABLE “OWNER” OF ANY OF
THE WaMu HOME LOANS!?"

We know that JPMC, through its Purchase and Assumption Agreement(12), FDIC granted JPMC certain
assets. These assets have NEVER been published anywhere, INCLUDING ANY READILY IDENTIFIABLE
COURT CASE IN AMERICA. It is also true that the Bankruptcy Examiner never stated any evidence of
ownership of any the WaMu loans and that the FDIC has NOT shared ALL the related information.(13) The
FDIC routinely hides any evidence of WHAT JPMC actually did purchase for less than a ½ penny on the
dollar (or even for free?), in court cases throughout America. (14)

The evidence and facts are mounting that the FDIC has NO CLUE WHAT JPMORGAN CHASE ACQUIRED.
WaMu Homeowners, Shareholders, and (certificate/bondholder) Investors are ALL asking the question …
WHY EXACTLY IS THAT? Typically, in any bank receivership ALL ASSETS ARE DOCUMENTED AND
ACCOUNTED FOR.

IF THE FDIC HAS NO CLUE AS TO EXACTLY WHICH “ASSETS” JPMORGAN CHASE ACQUIRED, THEN WHY
DOES THE FDIC ALLOW JPMORGAN CHASE TO UTILIZE FDIC RESOURCES, DOCUMENTS, MONEY, AND LEGAL
SUPPORT TO QUESTIONABLY (AND ILLEGALLY?) FORECLOSE ON WAMU HOMEOWNERS?(15)

THESE WAMU HOMEOWNERS’ LOANS WERE PROVABLY AND INARGUABLY LONG SINCE SOLD TO THE TRUE
“INVESTORS”(16)– (WITHIN SECURITIZED TRUSTS, OFF-SHORE AND/OR PRIVATE LABEL INVESTMENT
VEHICLES, AND COVERED BOND MARKETS(17)) - LONG BEFORE WAMU’s RECEIVERSHIP AND
QUESTIONABLE TAKE-OVER. (18) (19) (20) (21) (22)
In retrospect, if JPMorgan Chase had no future, premeditated intent of ever taking over WaMU,
then why did their related executives open up REO disposition offices in the major “boom States” across the
country – as far back as 2005 and 2006?

The Homesales, Inc. of Delaware company, is headquartered in Iselin, New Jersey. Homesales, Inc., has an
executive namedRenee Johnson. Renee Johnson was a long time Washington Mutual "National Manager for
Strategic Operations/REO." (23)

John Berens was an even more senior executive with Washington Mutual. Remember, Berens came down
to WaMU (in 2005 with Steve Rotella, and a few others) from JPMorgan Chase, to become Senior Vice
President of Loan Servicing – 24 years management with JPMorgan Chase (24)

WaMu operated its massive loan origination campaign, especially in key “boom” States. (25)

Ironically, or not, Homesales Inc., set up shop in many of the very same States as WaMu’s expansion plan –
again, in 2005 and 2006. All these companies are much like “cousins” in that the executives and managers
all worked together in one capacity or another and in other various roles surrounding default, servicing
and REO disposition. Furthermore, WaMU must have been JPMorgan Chases’ best, most profitable company
for wholesale funding and lending to WaMu during it’s “boom,” and long before. (26) WaMU most likely owed
JPMorgan Chase, and other major banks, BILLIONS of dollars by September 25, 2008. JPMorgan Chase’s
Jamie Dimon also knew intimate, confidential details about WaMu's precarious financial situation from his
ex-JPMC contacts, his position as CEO of JPMC, and his seat on The Federal Reserve. Jamie Dimon most likey
saw an opportunity as there is always great profit in disasters…. for certain people and companies with
inside information. Obviously. People like John Berens and Renee Johnson go way back to the other
companies such as WaMu or JPMC, but eventually, they wind up at Homesales, Inc. of Delaware (27) (28) (29)
(30) Lauren V. Harris is another such executive with Homesales, Inc… She has also involved as an executive
with California Reconveyance Corporation, and Chase Venture Holdings. (31)

So these are the people who work, or worked for WaMu, JPMorgan Chase, Chase Hone Finance, Homesales,
Inc., etc... (32) (33)It would be amazing to get to know these people and learn how they view “just doing their
jobs?” Do they know that the REO sale may be fraudulent by clouded title and unlawful foreclosure? Do
they know that the REO sale may have been assisted byfraudulent documents and faulty loan servicing? Or,
if the questionable loan servicing was part of securities fraud (reps and warranties in the PSA)?

Or, if the securities fraud may have been aided and abetted with illegal underwriting and appraisal fraud
by an un-holy number of WaMu (and affiliate) employees who inarguably and provably committed willful
and intentional mortgage fraud upon a massive number of unsuspecting WaMu Homeowners? These
homeowners were sold on the dream of home ownership, the American Dream?
One could only wonder, if we ever met by chance, if once they found out that 5 years later after imminent
default, how families lives would be changed forever. Could one even wonder if they would ever begin to
realize and experience the pain and agony of sleepless nights, isolation, emotional devestation, of fear,
anxiety, uncertainty, of tremendous loss of money, income and ruined credit? These are exactly the
symptoms collectively suffered by perhaps 100,000’s of defrauded Wamu Homeownervictims – cheated
Americans. What about the MILLIONS of all the victims of 1000’s of other unscrupulous lenders? Would the
bankers even care?

This compilation is dedicated to the hundreds of WaMu homeowners across America who have shared
their case information, hopes and fears, throughout the last 3 years of our groups’ inception.

- Rob Harrington* / Co-Founder of the NWHSG – 1/8/2012