Industry News

WaMu sues IndyMac

Lender seeks $50 million in damages for alleged bad loans

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Washington Mutual has sued IndyMac Bancorp for alleged breach of contract on a batch of residential loans that were originated, then sold between 1997 and 2000, according to court records. WaMu is acting on behalf of PNC Mortgage Securities, which it acquired in 2001, and is seeking $50 million in damages. The lender filed the complaint last week in Los Angeles Superior Court. The complaint involves a contractual dispute over warranties IndyMac allegedly made on residential loans sold to PNC, according to an IndyMac statement. IndyMac said in the statement that the two lenders had been negotiating a settlement before the lawsuit was filed. "We were surprised to learn of the lawsuit given that the parties have been in continued good faith negotiations and voluntary exchange of documents with pending settlement offers proposed by both sides," IndyMac stated. A spokesperson for IndyMac refused to comment or answer questions about the lawsuit. Representatives for Washington Mutual...