WaMu Option ARM Loan Class Action Settlement

A class action settlement has been reached in in the WaMu Option Arm Loan class action lawsuit and will resolve claims that Washington Mutual Bank’s loan divisions Washington Mutual Mortgage Securities Corp. (WMMSC), and WaMu Asset Acceptance Corp. (WAAC) issued Option ARM loans documents that allegedly failed to completely and accurately disclose loan information to consumers. The proposed WaMu Settlement was given preliminary approval by the court on Nov. 13 and may receive final approval in early 2015.

The plaintiffs of this WaMu class action lawsuit allege that the Option ARM Loan (also known as Option Adjustable Rate Mortgage Loan) documents provided by WMMSC and WAAC misled consumers by neglecting to inform WaMu consumers that if they made the minimum monthly loan payment during the beginning of the mortgage term, the principal balance of the Option ARM loan would increase.

Some of these Option ARM Loans were originally sold to consumers through BrooksAmerica and other lenders; however, these loans were later sold to WMMSC and WAAC. The plaintiffs of the WaMu Option ARM Loan class action lawsuit allege that WMMSC and WAAC willingly and knowingly aided this deceptive mortgage scheme by allegedly pre-approving Adjustable Rate Note forms. The plaintiffs of the Option ARM Loan class action lawsuit have filed several allegations against WaMu’s mortgage and assets partners, including claims of violating California’s Unfair Competition Law and the federal Truth in Lending Act.

WaMu, WMMSC, and WAAC have denied all liability in this WaMu Option ARM Loan class action lawsuit, but the companies have decided to settle to avoid further attorney’s cost and fees and the uncertainty of continued litigation.

Who’s Eligible

You are a Class Member of the WaMu Option ARM Loan class action settlement if you took out an Option ARM loan between Jan. 16, 2004 and Dec. 2, 2014, in order to secure real estate property in California through WMMSC or WAAC and said loan was serviced by Washington Mutual Bank.

Potential Award

$239-$716 depending on the principal amount and length of time you have had the loan.

Proof of Purchase

None. As a Class Member of the WaMu Option ARM Loan Class Action Settlement, you should have received a Class Notice in the mail. If the proposed settlement is given final approval, you should receive a check with your portion of the WaMu Settlement Fund.

Case Name

Peel, et al. v. BrooksAmerica Mortgage Corporation, et al., Case No. 8:11-cv-00079-JLS, in the U.S. District Court for the Central District of California.

Final Hearing

03/27/15

UPDATE: The WaMu mortgage loan class action settlement received final approval on April 6, 2015.

Settlement Website

www.WMMSCSettlement.com  [UPDATE: This website is no longer active. The settlement is now closed.]

Claims Administrator

Peel v. BrooksAmerica, et al., Settlement Administrator
c/o Angeion Group
1801 Market Street, Suite 660
Philadelphia, PA 19103
(215) 563-4116
wmmsc@angeiongroup.com

Class Counsel

BERNS WEISS LLP

WILLIAMS CUKER BEREZOFSKY LLC

MOORE & LEVIANT LLP

Defense Counsel

BURKE, WARREN, MACKAY & SERRITELLA, P.C.