Freddie, JPMorgan in Dispute Over Bad WaMu Loans

JPMorgan, which took over Washington Mutual's assets after the thrift collapsed, told Freddie it won't buy back mortgages sold by WaMu that failed to match promises made about their quality, McLean, Virginia-based Freddie said today in a regulatory filing.

Freddie, the mortgage-finance company seeking $13.8 billion of capital from U.S. taxpayers, in turn told JPMorgan that it won't permit the bank to keep the thrift's mortgage servicing contracts ``unless it assumes the Washington Mutual repurchase obligations,'' according to the filing.