SEATTLE — Washington Mutual Inc., the nation’s largest savings and loan, said Monday that problems in the mortgage and credit markets are forcing it to close offices, slash more than 3,100 jobs and set aside far more than expected for loan losses in its fourth quarter.
WaMu said it will cut its home-loan business by discontinuing all remaining lending through its subprime-mortgage channel, closing about 190 of 336 home-loan centers and sales offices, eliminating about 2,600 home-loan positions — or about 22 percent of its home-loan staff — and trimming 550 corporate and other support jobs. WaMu is discontinuing all subprime mortgage lending.
In Colorado, 110 employees across three offices are affected by the move. Home-loan centers in Greenwood Village, Westminster and Colorado Springs will be shut down. The company also is closing a call center in Greenwood Village.
Employees were notified about the cuts Monday and will be off the company’s payroll by Jan. 31, said WaMu spokeswoman Missy Latham. Salaried employees will be eligible for severance, she said.
WaMu has about 400 employees remaining at 40 retail branches in Colorado, mostly in the Denver metro area.
The company said it is slashing its dividend 73 percent.
Denver Post staff writer Kimberly S. Johnson contributed to this report.
