Twenty-three former Washington Mutual employees and several of the defunct thrift’s subsidiaries have been sued by the federal government as part of its mortgage-securities lawsuit against JPMorgan Chase.
The suit, filed last week by the agency that now controls Fannie Mae and Freddie Mac, accuses those individuals of signing off on documents containing false or misleading information that was used to sell billions of dollars worth of mortgage-backed securities.
The suit also goes into great detail about how WaMu and its subprime unit, Long Beach Mortgage, allegedly misrepresented specific securities and how those securities ultimately fared.
Fannie and Freddie, the two giant government-sponsored mortgage-finance companies, bought $12.9 billion of WaMu and Long Beach securities between September 2005 and June 2007, according to the suit.
The former WaMu and Long Beach officials named in the suit were, in most cases, midlevel executives.