If you cannot find your loan as a borrower from Washington Mutual Bank, Washington Mutual Bank FA, or Washington Mutual Bank Fsb, your loan may have been securitized as a mortgage back trust or as a covered bond, or used as collateral for a loan to the bank from the Federal Home Loan Bank.
Your mortgage loans may have been used as collateral for a "COVERED BOND" as part of the WM Covered Bond Program.
- Note this is a complex area and the application of the UCC (Uniform Commercial Code) to these transactions and the pledging of the Notes as a Cover Pool while they still remain on the balance sheet of the bank is a matter for expert legal analysis. To learn more about Covered Bonds go to the following websites:
In August 2006 Washington Mutual, Inc. pioneered the issuance of Covered Bonds in the United States through WMCBP or Washington Mutual Covered Bond Program Series 1, 2, and 3. These covered bond securities were marketed in Europe.
The mortgage bonds are senior obligations of Washington Mutual Bank (WMB), which will service the interest and repay principal on the mortgage bonds. If WMB is unable to do so or the asset coverage test is breached, then WM Covered Bond Program will enforce against the assets and use the proceeds to redeem the outstanding bonds.
WMB will pay all principal and interest on the mortgage bonds before an event of default.
Each mortgage loan must meet eligible criteria at the time it is added to the cover pool.
Washington Mutual Bank - Prospectus Supplement - November 22, 2006
WM COVERED BOND PROGRAM
"On September 27, 2006, the Issuer issued approximately $5.1 billion of Mortgage Bonds to WM Covered Bond Program, a Delaware statutory trust not affiliated with the Issuer, which in turn issued €4 billion of Covered Bonds secured by the Mortgage Bonds and by other collateral in an offering outside of the United States. The Mortgage Bonds were purchased by WM Covered Bond Program from the Issuer with the net proceeds of the Covered Bonds, after conversion into U.S. dollars and payment of related expenses. The Mortgage Bonds are senior obligations of the Issuer secured by a pool of residential mortgage loans owned by the Issuer and by certain of the Issuer's other assets (collectively, the 'Cover Pool') and would effectively rank senior to the Notes with respect to the Cover Pool collateral securing the Mortgage Bonds. The Issuer is currently authorized to issue from time to time additional series of Mortgage Bonds in an aggregate principal amount (together with the principal amount of Mortgage Bonds issued on September 27, 2006) of up to €20 billion under the existing Covered Bond Program and to pledge additional Cover Pool collateral to secure such issuances, all of which Mortgage Bonds would effectively rank senior to the Notes with respect to the Cover Pool collateral securing such Mortgage Bonds. Such authorization is subject to being increased in the future. Under the terms of the Mortgage Bonds issued by the Issuer on September 27, 2006, and any additional series of Mortgage Bonds that the Issuer may issue in the future, the Issuer will be required to pledge additional Cover Pool collateral if needed to ensure that the amount of collateral in the Cover Pool remains at or above the level required by the indenture relating to the Mortgage Bonds."
Effective October 2, 2006, The Bank of New York Trust Company, N.A. succeeded J.P. Morgan Chase Bank, National Association under the Global Bank Note Program in its capacities as Domestic Paying Agent, Registrar, Calculation Agent and Exchange Rate Agent.
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