Who Is Left for WaMu to Buy?

The ink still dry on its purchase of Dime Bancorp, Washington Mutual has vowed to continue its "buy-and-build strategy," but now the question becomes: Who's next?

Over the past year, rumors have circulated that WaMu has talked to Countrywide Home Loans, Astoria Federal, GreenPoint Financial, and most recently, Guaranty Federal, to name a few.

But with the exception of Countrywide, none of these firms rank among the top 25 servicers.

Who exactly WaMu will target next - or who it's been talking to lately - is unclear. Sources say Countrywide chief Angelo Mozilo will not sell to WaMu, and among the other top 10 residential servicers, most seem wed to mortgages.

Then again, some investment banking sources have questioned BankAmerica's commitment to the business (its housing receivables grew by an anemic 1% in the third quarter) and have speculated that WaMu might even take a run at CalFed, the parent of First Nationwide Mortgage, Frederick, Md., the nation's ninth largest servicer.

But for now merger speculation is just that, and WaMu is busy integrating its purchases of the past year, including Bank United, Houston; Dime/North American Mortgage, Tampa; Fleet Mortgage, Columbia, S.C.; and now HomeSide, to name a few.

In a recent interview, WaMu mortgage chief Craig Davis declined to discuss which firms his company might court, but vowed that the thrift was certainly not done buying.