America shouldn't be run like a business--especially a bank.
More especially not like Washington-Mutual, the largest home-mortgage banker in the United States.
The Editor, a W-M mortgage customer since late last century, earlier this year got a large refund from his escrow account for property taxes.
W-M's accompanying statement said the funds were left after paying 2002's property taxes. Grandson's spring-quarter tuition was paid with the windfall.
Excess funds collected over the years? Wrong. W-M inexplicably paid only $65 of last year's property taxes--discovered when The Editor received a late-payment notice from the county, along with hefty penalties.
W-M eventually ate only 70 percent of its mistake.
Meanwhile, to obtain a lower interest rate, The Editor applied online for W-M mortgage refinancing.
Six months later, after dozens of e-mail and telephone screwups, the refinancing papers were signed in September--with the proviso that the October mortgage payment be skipped.
Found money, right? Wrong. The Editor's original mortgage payment to W-M was made by electronic tranfer on Oct. 1--threatening his checking account with multiple penalties for insufficient funds.
W-M spokespersons said electronic-transfer agreements in the original mortgage document required advance notice from the borrower to suspend the electronic payment. There was, naturally. no reminder of that policy in the refinancing papers.
A faxed checking-account printout showing the electronic transfer had to be sent to W-M, which then had 48 hours to return the October mortgage payment--hopefully in time to prevent a slew of bounced checks.
Fat chance. W-M did take 48 hours to send the payment--by check and snailmail--not by electronic transfer. The W-M check arrived five days after that--too late to avoid bounce penalties.
Expecting the other shoe to drop, The Editor predicts the legitimate November electronic transfer will be screwed up as well, prompting W-M to demand late fees and another round of telephoned protests.
It dropped early. Ticor Title entered the picture by demanding $203.71 in property-tax escrow payments not covered by W-M's closing costs in the final refinancing papers--even though all closing costs were supposed to be included in the loan.
Washington-Mutual, The Bank from Hell. (5 OCTOBER 2003)
by James M. Voigt@harryhiggens.com
11141 N.E. San Rafael St.
Portland OR 97220
503-253-3871
W-M Loan No. 0624619649
