Chase: Two-Thirds of WaMu Mortgages Impaired [sorry, this appears to be old story]

[FarCenter]

Chase said two-thirds of the $173.5 billion in mortgages picked up via its acquisition of Washington Mutual assets were deemed “impaired,” per the Seattle Times.

That’s $116.7 billion in bad loans, though Chase said it has already written down their value to $88.8 billion.

A hefty 82 percent of the pay option arms are considered impaired, while 80 percent of subprime loans and two-thirds of home equity loans share that distinction.

Chase expects $32.5 billion in total losses on the WaMu home loan portfolio, though that number could rise to as much as $40 billion if home prices fall more than expected.

The company also expects losses on WaMu’s $28 billion credit-card portfolio to approach a costly 15 percent this quarter.

<SNIP>http://www.thetruthaboutmortgage.com/chase-two-thirds-of-wamu-mortgages-impaired/