2007-11-04 — nwsource.com
What's going on here? Either the borrowers postponing their interest payments are doing so as a matter of choice or they can't afford to pay them.
Common sense suggests it's the latter — and that there's serious doubt WaMu will collect the $1.5 billion of postponed interest that its option-ARM customers have added to their original principal balances.
Here it comes... "we told you so".
It gets worse for these jokers:
Then there's the bigger picture. While the loan-loss allowance rose 22 percent to $1.89 billion during the 12 months ended Sept. 30, nonperforming assets rose 128 percent to $5.45 billion. So even if WaMu adds $1.3 billion in provisions next quarter, its loan-loss allowance still won't be close to catching up.
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