Yet Another Epiphany

Apparently Washington Mutual had some unorthodox mortgage-lending practices:

As a supervisor at a Washington Mutual mortgage processing center, John D. Parsons was accustomed to seeing baby sitters claiming salaries worthy of college presidents, and schoolteachers with incomes rivaling stockbrokers'. He rarely questioned them. A real estate frenzy was under way and WaMu, as his bank was known, was all about saying yes.

Yet even by WaMu's relaxed standards, one mortgage four years ago raised eyebrows. The borrower was claiming a six-figure income and an unusual profession: mariachi singer.

Parsons could not verify the singer's income, so he had him photographed in front of his home dressed in his mariachi outfit. The photo went into a WaMu file. Approved.

"I'd lie if I said every piece of documentation was properly signed and dated," said Parsons, speaking through wire-reinforced glass at a California prison near here, where he is serving 16 months for theft after his fourth arrest - all involving drugs.

While Parsons, whose incarceration is not related to his work for WaMu, oversaw a team screening mortgage applications, he was snorting methamphetamine daily, he said.

Washington Mutual, or Wa Mu - went belly up this year after a great 10 year run in which it was a very hot stock and big-time mortgage lender.

My wife and I have been wondering for years how people could afford some of these homes. More than once I can remember remarking [about the mortgage lenders willing to loan $800,000, interest only, to someone who made $100,000]: "What are they, on crack?"

I use that line a lot. People usually think I am joking.

Not this time, baby!