Washington Mutual Bank

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My husband and I wanted to take advantage of the low rates in the economy and lock in at a lower fixed rate on our mortgage. In December I started doing research on rates to find the best deal available. Not wanting to pay broker fees (the upfront cost often takes a few years to recoup in actual dollar savings) and knowing some of what was available from working in the industry, I wanted to start with the major players in the mortgage industry. Of those, Washington Mutual was boasting the best rates on the product we wanted: 30 year fixed rate mortgage.

They warned of a longer than average time to close because of the large number of clients they were servicing. This didn't surprise me because I had done the research and every one should be applying with them; they offered the best rates.

Not only did they have the best rates, but their website (where I prefer to do most of my personal research) was exquisite. It promised to keep track of your loan process from application to close by date stamping each task completed by the Washington Mutual staff. You could email your loan processor directly for status at any time by simply clicking below their picture. Most lenders won't follow up with you regarding each step; you'll need to contact them to find out what is going on. This was a definite selling point: perhaps they did have more "human interest" as their commercials boast.

Even my first telephone contact with them seemed promising. The representative seemed to care about what our goals were and wanted to be upfront about the expected process. She even added to the experience by dropping the rate even more than the posted rate because of our credit ratings. This ended by pleasant experience with Washington Mutual.

Our estimated closing date (after my conversation with the representative) was 60 days. We weren't going to provide income documentation (because of our credit ratings which were already checked) so we could speed the process from their 90 day disclaimer. 60 days later they had done nothing online and a phone conversation confirmed the same. Although a less than competent appraiser had made it seem crucial that he see our home (for 30 seconds) to prepare his $375 report for them. He didn't have the right age of our home, number of rooms, square footage, or comparable sales. (I'm certified as an appraiser and know his skills and professionalism were less than par.)

Washington Mutual had yet to transfer our file for processing (analyzing for approval). I complained by email (the link online didn't work by the way; only an empty screen came up) and received a call 2 days later from our processor. Two weeks later after another email complaint on my part, I got a call from a woman asking what type of loan we were looking for and saying we would need income documentation because we didn't qualify for the product we wanted. Our credit scores didn't meet guidelines. I was furious. Two and half months later and they had done nothing on my loan and had actually taken 5 steps backwards. I had to re-explain what we were trying to do (reduce our interest rate). I had wasted this much time and at least still had a lock on my interest rate, so we submitted our documents.

A week later after another complaint email, I received a call saying our taxes didn't verify enough income because they could only consider a portion of our tax return. That's ridiculous. The IRS considers the entire thing. They wouldn't. He said we could refinance to an adjustable rate mortgage, but not a fixed rate. Why would I refinance to a variable rate when we have a fixed rate right now? Why would I have waited three months to refinance when I could have converted to variable rate with my current lender in two weeks? He had no answers for me so I spoke with his supervisor.

She disagreed with him regarding what minimum credit scores were for fixed rate products and confirmed they wouldn't consider a large portion of our annual income from 2 years tax returns. I explained that I was more than disappointed with their service and suggested that they figure out a way to communicate among their ranks what exactly they could and couldn't do so their customers might better know what to expect.

I followed this up with an email suggesting the same and explained that I would be embarrassed if my own staff were this incompetent. They sent a generic "we care" email back and asked that I call and explain what happened. I JUST DID! I had sent them an extensive email with names, dates, and continued disappointments.

Recommended
No
 

Washington Mutual needs to be held accountable and punished severely. My total loss so far is $469.68 plus countless hours on the phone, faxing documents and e-mailing information.

1. Miss-management of home mortgage escrow account. In 2002 I received notice from Washington Mutual that there was a shortage in my escrow account. After I researched the transaction history I found that Washington Mutual paid my home owner’s insurance twice by mistake. Three months of phone calls to the Washington Mutual customer service line were required before they fixed their mistake. Countless hours wasted.

2. Forced Flood Insurance. On May 30 I received a letter from Washington Mutual that my home requires flood insurance and if I didn’t provide proof of insurance within 45 days (7/14/03) they would place (force) insurance. I called Wamu Customer service, talked to Tiffany, and explained that my home is not in “flood zone AE” and I have “Flood Letter Certification” stating that my property is in Zone C. Tiffany told me to fax the letter to Attn.: Insurance Dept at 843-413-2000 and include my loan number, which I did. I received another “Notice of Flood Insurance Requirement”. I called Customer service again and talked to Dan. He said that they received the fax but did not complete the work order to stop the forced insurance. Dan assured me that I will not receive any more”Flood Insurance Requirement” letters. On July 5th I received a “Second Notice of Flood Insurance Requirement” letter dated July 1. This letter states that if I do not respond in 15 days (7/16/03) flood insurance will be obtained at my expense at a cost of $1,315.88 per year. I checked with the Better Business Bureau and found a fax number for Lisa Marita Executive Liaison. I faxed the information to Lisa Morita, Al Turbeville and Rob Sawall. All assured me that this problem has been taken care of and there would be no forced flood insurance. On Aug. 21 the amount of $1,315.88 was taken from my escrow to pay for flood insurance and the coverage started 5/26/03 (50 days earlier than what was stated in the May 30 letter). On Aug. 22 I refinanced my mortgage with my local credit union, no flood insurance needed. I faxed Wamu insurance dept. told them to contact the flood insurance company and wave the flood insurance. Wamu didn’t contact the insurance until 9/2/03 and they gave the insurance company a cancellation date of 9/2/03 instead of waving the insurance. $355.78 lost.

3. Lies, lies, and more lies. On Sept. 12 the flood insurance company mailed a $960.10 refund check to Wamu ($1,315.88 – $355.78 "99 days of coverage 5/26/03 to 9/2/03" = $960.10). On Oct. 15 Wamu mailed a $846.20 check to me ($113.90 short). Below is the e-mail communication that I have had with Tracie, a Washington Mutual eCare specialist from Jan. 29 through Feb. 6. Note, please scroll to the bottom to read in chronological order:


2/6/04
Tracie,
Nice try.
I have a copy of the letter sent from Yolanda Glass of Washington Mutual to the title company dated 8/29/03 stating "Your check in the amount of $98,584.91 was received." Also, I have a copy of the FedEx shipping label (TRK # 7908 8222 7788) with proof that the $98,584.91 check was delivered to Washington Mutual Payoff Unit on 8/28/03.
Now before you try to tell me that the $88.90 in interest is because the $1,112.39 wasn't received until 9/3/03, Yolanda's letter also states "The signature on this guarantee letter will ensure the payoff of this loan and will keep interest from accruing... Washington Mutual will stop further interest from accruing on the loan... If funds are not received at Washington Mutual by 9/3/03 we understand that the loan will be reactivated." I also have a copy of the FedEx shipping label (TRK # 7923 1948 1711) with proof that the $1,112.39 check was received at the Washington Mutual payoff Unit on 9/3/03, and the transaction history shows payment received in the amount of $999.99 + $112.40 = $1,112.39 on 9/3/03.
Send a check to me in the amount of $113.90.
I am following through with what I stated in my 2/5/03 email to you:
"If your next email does not satisfy my request I will file a complaint with the Attorney General, the OBRE, www.ripoffreport.com, etc. The complaint will include how Washington Mutual miss-managed my escrow account in 2002, falsely forced flood insurance in 2003, added bogus fees to the closing/payoff amount and failed miserably at "customer service".
The above reports will be mailed Monday, 2/9/03. I suggest you satisfy my request no later than noon Monday.
M
________________________________________________________________________
From: "WaMuLoanService.com"
Reply-To: "WaMuLoanService.com"
To: M
Subject: Re: Re: Re: Re: Re: Escrow / Taxes / Insurance
Date: Fri, 06 Feb 2004 13:22:08 -0800

Dear M,
Thank you for your inquiry about your Washington Mutual home loan.
When a loan is being paid in full, interest accrues daily. The interest due on 09/02/03 was $632.36. The amount received to be applied as interest was $543.46 (good through 08/28/03). The difference of $88.90 was applied as interest.
It is our goal to provide you with the best customer service possible.
If you have any additional questions or concerns regarding your home loan, please contact us again by email or contact our Customer Care Department toll-free at 1-866-WAMU-YES. Our home loan professionals are available to respond to you 24 hours a day, except for major holidays.
Thank You,
Tracie
eCare Specialist
Washington Mutual Bank, FA
_______________________________________________
Tracie,
I have a copy of the Washington Mutual Demand/Payoff Statement dated 8/20/2003. This statement itemizes the following:
Current total unpaid principal balance - $97,956.45
Interest to 8/28/2003 - $543.46
Payoff statement fee - $60.00
Recording Fee - $25.00
Total amount due to Washington Mutual - $98,584.91
In your email you said "On 09/02/03, Washington Mutual received funds in the amount of $98,584.91. $25.00 of this was immediately applied as the recording fee, leaving a remainder of $98,559.91 (the $60.00 payoff statement fee was not taken from this amount)."
If the $60.00 payoff statement fee was not taken from the "remainder of $98,559.91" then where did the extra $60.00 go? It wasn't the principal balance ($97,956.45) because I verified the principal balance amount with the transaction history. It wasn't the interest ($543.46) because again I verified the amount with Washington Mutual records. The Washington Mutual Demand/Payoff Statement dated 8/20/2003 along with the transaction history is proof that the $60.00 fee was included in the payoff total of $98,584.91.
As for the $28.90, you said: "We received the additional payment of $1,112.39 on 09/02/03. What was required was $1,141.29". Again, I have proof that the amount required was $1,112.39. I have a fax dated 8/29/03 from Yolanda Glass of Washington Mutual sent to the title company confirming receipt of $98,584.91 and requesting a balance due amount of $1,112.39. Where is your proof that $1,141.29 was required?
Please send a check to me in the amount of $113.90.
If your next email does not satisfy my request I will file a complaint with the Attorney General, the OBRE, www.ripoffreport.com, etc. The complaint will include how Washington Mutual miss-managed my escrow account in 2002, falsely forced flood insurance in 2003, added bogus fees to the closing/payoff amount and failed miserably at "customer service".
M
____________________________________________
From: "WaMuLoanService.com"
Reply-To: "WaMuLoanService.com"
To: M
Subject: Re: Re: Re: Re: Escrow / Taxes / Insurance
Date: Wed, 04 Feb 2004 14:52:23 -0800
Dear M,
Thank you for your inquiry about your Washington Mutual home loan.
On 09/02/03, Washington Mutual received funds in the amount of $98,584.91. $25.00 of this was immediately applied as the recording fee, leaving a remainder of $98,559.91 (the $60.00 payoff statement fee was not taken from this amount).
We received the additional payment of $1,112.39 on 09/02/03. What was required was $1,141.29 (the difference of $28.90 was advanced by Washington Mutual). We then used these funds to pay the loan in full.
When we received the refund for the insurance, the $60.00 payoff statement fee was still outstanding (as the funds were used toward payoff). The advance of $28.90 was also outstanding. We used part of the insurance refund to pay these funds, totaling $88.90. The remaining was applied as the recording fee, which I have requested to have refunded.
It is our goal to provide you with the best customer service possible.
If you have any additional questions or concerns regarding your home loan, please contact us again by email or contact our Customer Care Department toll-free at 1-866-WAMU-YES. Our home loan professionals are available to respond to you 24 hours a day, except for major holidays.
Thank You,
Tracie
eCare Specialist
Washington Mutual Bank, FA
_____________________________________
Dear Tracy,
According to YOUR RECORDS (Transaction History on the WaMu website, Fax from WaMu to the Title Company and the Washington Mutual Demand/Payoff Statement) there is no record of a $88.90 shortage.
I expect a detailed explanation of what specifically created this "shortage" and an answer to why the "shortage" does not show anywhere in your records.
Please send a check to me in the amount of $113.90.
M
_________________________________________
From: "WaMuLoanService.com"
Reply-To: "WaMuLoanService.com"
To: M
Subject: Re: Re: Re: Escrow / Taxes / Insurance
Date: Wed, 04 Feb 2004 12:41:31 -0800
Dear M,
Thank you for your inquiry about your Washington Mutual home loan.
According to our records, the final payoff was still short by $88.90, even after the additional funds were received from your title company. The $60.00 that should have been applied as the payoff statement fee was used toward this shortage, along with $28.90 that was advanced by Washington Mutual.
Because the $60.00 was used toward the payoff and not the statement fee, it was still outstanding. I do see, however, that the $25.00 recording fee was paid two times in error. I have made a request to have $25.00 refunded.
It is our goal to provide you with the best customer service possible.
If you have any additional questions or concerns regarding your home loan, please contact us again by email or contact our Customer Care Department toll-free at 1-866-WAMU-YES. Our home loan professionals are available to respond to you 24 hours a day, except for major holidays. >
Thank You,
Tracie
eCare Specialist
Washington Mutual Bank, FA
____________________________________________
Dear Tracy,
The payoff amount, per the Washington Mutual Demand/Payoff Statement dated 8/20/03, was $98,584.91. This total includes:
Current total unpaid principal balance $97,956.45
Interest to 08/28/2003 at 07.500% $543.46
Payoff statement Fee $60.00
Recording Fee $25.00
My loan transaction history shows payment received of $98,559.91 and $25.00 (total $98,584.91) on 9/02/03.
On Friday, 8/29/03 Washington Mutual notified my title company by fax that a check in the amount of $98,584.91 was received; however it was short in the amount of $1,112.39. My Title company sent $1,112.39 overnight, to be delivered Tues., 9/02/03 (9/1/03 was Labor Day). My loan transaction history shows payment received of $999.99 and $112.40 (total $1,112.39) on 9/03/03.

I have documentation of the above figures.
The $60 payoff statement fee was paid 9/02/03.
The $25 recording fee was paid 9/02/03.
The shortage was paid 9/03/03.
Please send a check to me in the amount of $113.90.
Please respond.
Thank you,
M
_____________________________________
From: "WaMuLoanService.com"
Reply-To: "WaMuLoanService.com"
To: M
Subject: Re: Re: Escrow / Taxes / Insurance (KMM5028029V72129L0KM)
Date: Mon, 02 Feb 2004 17:42:35 -0800
Dear M,
Thank you for your inquiry about your Washington Mutual home loan.
Following are the fees that were paid at closing from the insurance refund:
Payoff Statement Fee: $60.00
Recording Fee: $25.00
Advance: $28.90
When the loan was paid in full, the payoff amount was short by $28.90, therefor, Washington Mutual advanced the funds so that the loan could be paid in full. The other fees were a part of the final payoff. As the funds were owed to Washington Mutual, we used part of the insurance refund to cover the cost. Had we not done so, you would have received a bill in the mail for the remaining amount due.
It is our goal to provide you with the best customer service possible.
If you have any additional questions or concerns regarding your home loan, please contact us again by email or contact our Customer Care Department toll-free at 1-866-WAMU-YES. Our home loan professionals are available to respond to you 24 hours a day, except for major holidays.
Thank You,
Tracie
eCare Specialist
Washington Mutual Bank, FA
_________________________________________
Dear Tracy,
Please send me an itemized list of the "some outstanding fees" that you mentioned in your e-mail. Who authorized the use of my insurance refund to pay for your "some outstanding fees?"
Please respond.
Thanks,
M
________________________________________
From: "WaMuLoanService.com"
Reply-To: "WaMuLoanService.com"
To:
Subject: Re: Escrow / Taxes / Insurance
Date: Thu, 29 Jan 2004 14:30:45 -0800

Dear M,

Thank you for your inquiry about your Washington Mutual home loan.

Our records indicate that at the time this loan was paid in full, there were some outstanding fees not covered by the payoff sent. When Washington Mutual received the insurance refund, we used a portion of it ($113.90) to cover money that was still owed to us. The remainder, $846.20, was refunded on 10/15/03.

It is our goal to provide you with the best customer service possible.

If you have any additional questions or concerns regarding your home loan, please contact us again by email or contact our Customer Care Department toll-free at 1-866-WAMU-YES. Our home loan professionals are available to respond to you 24 hours a day, except for major holidays.

Thank You,
Tracie
eCare Specialist
Washington Mutual Bank, FA
__________________________________________

Original Message Follows:
------------------------
From: M
Email: ***********@*******.com
Loan Number: **********
Application Number:
Phone Number: ***-***-****

On Sept. 12 SWBC mailed a check in the amount of $960.10 to Washington Mutual for refund of flood insurance on loan #**********. On Sept. 15 Washington Mutual received and deposited the check. This information has been verified by Amy and Jenny at SWBC and Wendy from Assurant. Check #897747737A in the amount of $846.20 dated 10/15/2003 arrived in my mailbox Oct. 20 from Washington Mutual (short $113.90). I called Washington Mutual on Oct. 21 and talked to Ann McKay she told me to call Wendy Dorrell at 843-413-2388. I spoke with Wendy on Oct. 24 and gave her all of the information listed above. Wendy said she will look into it and call me back. Wendy never called me back. Please send me the $113.90 that you owe me to my address: ***** * ********* Lane, *****, IL. I expect a response no later than 5 business days from today (2/5/04). You can reach me at work: ***-***-**** x*** or by e-mail:************@*******.com
Thank you,
M

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Recommended
No

Read the full review

I'm sorry to say that my review is not a positive one. My experiences with Washington Mutual have not been good. I was sold to Washington Mutual and they promptly ignored my taxes that were due. Then, they followed that up with not paying my home owner's insurance. While trying to clear up the first tax payment that was missed, they missed another one. Finally after phone calls, too numerous to count, letters of complaint to several agencies, both tax payments and home owner's insurance was paid. Soon after that, it was time for another tax payment. I think you see the pattern that is developing. In the two years they held my mortgage, they only paid my taxes on time once. The only reason it was paid on time was because the installment before it was paid twice! Throughout this entire time I was given incorrect or non existent fax numbers, incorrect information, and lied to about the date that an over night letter was sent out (I proved this through online tracking of the letter).
I joined a class action lawsuit, and continued to file complaints. I stayed on top of my loan and followed up with every mistake made. I refinanced and was sold back to them. Guess what ... the pattern has continued. Already, I was given a wrong fax number, information I called in was never put into my account, and customer service reps have given me conflicting information. I am now documenting my experience with Washington Mutual on the web. You can follow it here: http://nansbattle.blogspot.com/

Recommended
No
 

The following is from my personal experience with our home loan. Recent frustration definitely played a hand in inspiration in writing this piece.

We have used WAMU since closing on our house in December 2000. We have refinanced twice to achieve better rates. Refinancing has gone smoothly, no problems there.

We did have them lose a check one time. The money came out of our account and cleared at the bank, yet the funds were never applied to our loan and they said they did not receive payment. Hmmm, well, exactly who has the money? We had to obtain a copy of the check from the bank, which showed WAMU did in fact cash the check (yet they claimed they didn't) in order to prove to them they got the payment.

In the mean time they placed some type of "flag" (which I found out two months later) on our account that disabled on-line and automatic phone access. I went round and round with them on how to get the on-line access enabled again. It took over two months of dealing with idiots and escalating the matter to a regional president to get them to finally figure out this "flag" was set on our account. The flag was set when the aforementioned payment problem occurred. Once the "flag" was turned back off everything started working again.

I refer to the customer service (via e-mail) as idiotic because I would state step-by-step how I tried to access my information online (e.g. reset password, create new account, etc.) and how the website responded. They would e-mail back and give me instructions that were what I had stated that I already tried. I finally got someone on the phone and gave him or her my necessary personal information so they could try it. I would then hear them exclaim, "hmmm, it didn't work." Well duh!!

Also note, the contact phone numbers for both customer service and loan application on their website are out of date, as they are out of service. Come on, get it together! How hard is it to update a phone number on a website?

We also deposit into an escrow to pay insurance and the taxes. Only they didn't pay the taxes. Once again much effort on my part to get the tax matter straightened out.

Smooth sailing for a while, but that didn't last. We always pay extra principle with each payment.

Tip: If you think about it, by matching your principle payment portion (small in the beginning) you are saving the (large initially) interest portion. It's like getting an extra payment in for only the cost of the principle portion. Pay even more and you can literally save 100's of 1000's of dollars.

Anyhow, on the payment stub there are spots for "Late Fees", "Future Payments", "Additional Principle" and "Additional Escrow".

Well, this last month the "Additional Principle" was applied to "Future Payments". Ugggg!!!! Why would I want to give them money early without any benefit. I had to get them to reverse the funds back out and then reapply them the correct way.

So as to avoid this problem this month, not only did I write the additional principle amount in the "Additional Principle" blank (as always) but I also highlighted it with bright green. I also wrote a note on the slip stipulating additional funds to only go to additional principle, and highlighted it in bright green as well.

You can guess what happened again, applied to future payments!! Arrggggg!!!!! >:-<

I guess I need to hold someone's hand while they apply my check! I do not want to go through this every month.

If I make a mistake they charge me a fee, well, they screwed up, again, and even when I made special provisions to prevent such an occurrence none-the-less. I think they owe me a penalty fee!!

They also informed me they have no way of tracking which employees are applying which payment tickets. Completely ridiculous, someone incompetent is probably screwing up hundreds of customers.

And if those customers are not closely monitoring how their funds are applied, they are getting ripped off big time.

Stupid Washington Mutual!!

I will have to see what happens next month. Uggg.

Follow Up

I am told that anytime extra funds are greater than a normal payment (e.g. Say payment is $800 and you submit $1700, thus extra is $900, which is more than normal payment)then those funds will be automatically applied to future payments versus additional principle, how incredibly stupid. They claim that many people like this. (Yeah, I would like that about as much as using $100 bills as tinder to start a campfire! About the same difference.) And never mind that fact that I have been sending in payments that would qualify for this condition for many months and had not had a problem till recent.

Apparently my checks and payment slips only recently started being automatically processed, which has caused the recent misapplied funds.

I am told that one possible solution is to staple my check to the payment slip to prevent the automatic system from being used. There is apparently not a way to tell the automatic system to always apply my extra funds to additional principle.

They are going to first try setting an option that will kick my payment out of the automatic system. Apparently, and they have indicated, when the automatic system is used it does not matter how you fill out the payment slip. Boy oh boy, what a great automatic system. What year is this??

It seems to have worked though. All the extra funds in my payment were correctly applied to additional principle. Sheesh!

End Follow Up

On a positive note, our loan officer (name withheld to meet policy) is awesome. She really has it together, very professional. Too bad the rest of the company doesn't work as well as she does. She has also been there, even long after closing, to help escalate resolution of these issues.


Recommended
No

Received a Home Equity Line of Credit from home builder's loan officer last July. Washington Mutual acquired the loan shortly after that. Since then, I have had the following problems:
- Washington Mutual changed the payment address without announcing it (twice starting in April 2003)
- When payments went to the previous address, Washington Mutual sent a collection letter claiming that the account was past due
- Customer service phone lines were jammed and it took over 30 minutes on hold to reach a representative. Representative stated that many people did not receive notice of payment address change.
- Representative also stated that a hold was placed on the account so no negative information would be reported to credit bureaus and that payments would be backdated when they were received.
-I later ordered credit bureau scores when preparing to re-finance and found they had reported the account 30 days delinquent to the bureaus even though on off-schedule payment that I sent to the new address cleared 26 days after the due date. (This is in addition to the regular payment that they lost)
- When I tried to pay off the balance and end the relationship, Washington mutual underestimated my payoff balance by approximately $2,500 so had to make a second "payoff" payment
- This has gone on for approximately 3 months now and Washington Mutual has not responded to any of my faxed requests with confirmation that the payments have been backdated or that the credit reports have been corrected.
- Customer service has proven both incompetent and apathetic.

Recommended
No