The abrupt slowdown in the home loan refinance market apparently has sent some lenders on a mission to clean house of all bad loans. Washington Mutual last week filed a lawsuit against IndyMac Bancorp for alleged breach of contract involving loans it acquired from IndyMac after buying PNC Mortgage Securities in 2001. WaMu is seeking $50 million in damages for more than 300 loans IndyMac sold to PNC between 1997 and 2000. The loans allegedly fall into three categories: delinquent payments, improper borrower credit verification and overvalued property appraisals, according to the complaint. Fifty million dollars might seem a paltry sum for one of the nation's largest financial corporations, but WaMu may be trying to recoup some old losses in light of the slowing mortgage market. The com...
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