Monday, October 7, 2013

Under What Authority Did WAMU Continue to do Business in the Name of a Dead Bank?

On January 1, 2005 Washington Mutual Inc.’s merged its state savings bank known as Washington Mutual Bank with its federal savings bank known as Washington Mutual Bank FA.  On April 5, 2005 Washington Mutual Bank FA ceased to exist and became the entity WaMU (Washington Mutual Bank, a federal savings bank). Washington Mutual Bank (WaMu) continued doing business as Washington Mutual Bank, FA.  Under whose authority did this occur?  Mystery solved!

A document dated May 2, 2008 -- prior to the FDIC Receivership of WaMU – filed in the US District Court in Northern California, San Jose, resolves the explanation as to WaMu’s continued use of the name of the non-existent Washington Mutual Bank, FA.  See Case 5:08-cv-00868-RMW Document 44 Filed 05/02/2008, in a class action, Sidney Scholl and Felton A. Spears v. Washington Mutual Inc., Washington Mutual Bank FA (aka Washington Mutual Bank) and First American Eappraiseit.  Defendants filed a Request for Judicial Notice in Support of a Motion to Dismiss Plaintiff’s First Amended Complaint.

Defendant Washington Mutual Bank requested that this Court take judicial notice of  the following facts and documents pursuant to Federal Rule of Evidence 201: 

·        Washington Mutual Bank is a federally-chartered savings association located in Stockton, California, pursuant to Federal Stock Charter No. 4539, declared effective on December 28, 1988 by the Federal Home Loan Bank Board. Attached as Exhibit A is a true and correct copy of the Federal Stock Charter of Washington Mutual Bank, FA, formerly known as American Savings Bank, F.A., as amended by the Consent of Shareholders in Lieu of Meeting dated September 23, 1997, reflecting that, on June 17, 1997, American Savings Bank, F.A. amended the Federal Stock Charter to change its corporate title to Washington Mutual Bank, FA, and that, effective April 4, 2005, Washington Mutual Bank, FA amended the Federal Stock Charter to change its corporate title to Washington Mutual Bank and amended its Bylaws to provide that Washington Mutual Bank also may do business under the name Washington Mutual Bank, FA. See United States v. Chapel, 41 F.3d 1338, 1342 (9th Cir. 1994) (fact of bank s FDIC-insured status was proper subject of judicial notice); United States v. Phillips, 427 F.2d 1035, 1037 (9th Cir. 1970) (same).    


·         On January 1, 2005, Washington Mutual Bank merged into Washington Mutual Bank, FA. Attached hereto as Exhibit B is a true and correct copy of an Office of Thrift Supervision Certificate of Succession in Interest reflecting this merger and the related amendments to Washington Mutual Bank s Federal Stock Charter and Bylaws.

From April 5, 2005 through September 25, 2008 Washington Mutual Bank continued to do business and making thousands of mortgages as Washington Mutual Bank FA.  Since 2008 countless homeowners have been facing foreclosure at the hands of JPMorgan Chase Bank NA. We now know how this occurred.   

The bigger question is “Why would WAMU use the name of a dead bank to conduct its business?”

1 comment:

  1. On Feb 2, 2005, there was an Administrative Agreement made between "Washington Mutual Bank" servicer, and "Washington Mutual Mortgage Securities Corp" admin agent.

    The odd thing is that it states "Washington Mutual Bank formerly known as Washington Mutual Bank FA".

    Why would it state that on 2/2/2005 if it didn't happen until 4/4/2005?