BiggnightsSo Long WaMu...If Only.....?
October 6th 2008 01:30
As Citibank and Wells Fargo fight over the pieces of Wachovia, I have to wonder about the demise of Washington Mutual (WaMu). Reportedly the largest bank failure in history, I wonder if different choices by management may have made a difference in the outcome.
Around 1997 I was engaged on a project at Great Western Bank to develop a system to track the performance of their mortgage portfolio, which at the time was around $3.5 Billion, if I recall correctly. The system was to track changes in market value, credit ratings, re-fi and sales activities, etc. I recall we tracked ZIP code-based statistics about property values, and differentiated between residential, multi-unit, commercial and industrial property as well.
The system was developed as a result of an outside auditors report that there was insufficient management visibility into the mortgage pool the bank held.
About a year or so later, WaMu acquired Great Western Bank as part of their expansion outside of their home state. I recall discussions with the new management about the mortgage tracking system and how it could deliver better information about mortgage performance. They responded that they didn't need such a system. So, I moved on to other projects, with cell phone companies, and construction companies and manufacturers.
However, I have to wonder what would have been different had they decided to use that mortgage performance tracking system...I guess we'll never know.
Around 1997 I was engaged on a project at Great Western Bank to develop a system to track the performance of their mortgage portfolio, which at the time was around $3.5 Billion, if I recall correctly. The system was to track changes in market value, credit ratings, re-fi and sales activities, etc. I recall we tracked ZIP code-based statistics about property values, and differentiated between residential, multi-unit, commercial and industrial property as well.
The system was developed as a result of an outside auditors report that there was insufficient management visibility into the mortgage pool the bank held.
About a year or so later, WaMu acquired Great Western Bank as part of their expansion outside of their home state. I recall discussions with the new management about the mortgage tracking system and how it could deliver better information about mortgage performance. They responded that they didn't need such a system. So, I moved on to other projects, with cell phone companies, and construction companies and manufacturers.
However, I have to wonder what would have been different had they decided to use that mortgage performance tracking system...I guess we'll never know.
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