I agree, going forward they will have serious issues to deal with. I am one of those who will no longer be doing work for WAMU as I refuse to deal with the likes of LSI. I’d rather take the day off than work for sub-standard fees and deal with the phone monkeys.
In my previous post I was speaking directly towards their current loan portfolio which I believe is probably very solid. If standards and quality go down the drain like most believe, I think it will take at least a year or two for that to be reflected as an increase in defaults.
I still don’t think this is a good time to short WM. Countrywide and Wells have been cutting corners on collateral evaluations for years and it shows in the REO and NOD lists.
