Big Banks carrying Bad Debt

In all the credit turmoil among major banks and lending institutions, real estate transactions are held hostage by borrowers ability to borrow money. I submit that real estate agents get together and say a small prayer for the credit crisis to be over, and for jumbo loans, with loose guidelines to return, as soon as possible !
Shares of Washington Mutual fell rapidly to their lowest levels in 20 years after the company issued its latest forecast. By midday in the session, the lender's stock had dropped more than 19% on nearly twice its average daily volume. Washington Mutual Inc. said on Wednesday that 2007 credit losses could amount to between $2.7 billion to $2.9 billion, almost double the estimates it made in July when the subprime meltdown began wreaking havoc in U.S. mortgage markets.
During presentations, the savings and loan cited Fannie Mae data that suggest U.S. mortgage origination in 2008 will fall to $1.5 trillion for the industry. That would be a substantial decrease from $2.8 trillion from all lenders in 2006. Earlier projections were that new mortgage-loan volumes would slump to around $2.4 trillion. Kerry Killinger, Washington Mutual's chief executive, refused to speculate on whether the company's board of directors would raise dividend rates. He pointed to a lack of visibility over market conditions, liquidity issues and even earnings.
"We don't always have great certainty around the future," Killinger said during the daylong conference. "We just don't know how long this level of lower performance will remain."
Adding to the uncertainty are comments from Chief Financial Officer Thomas Casey, who warned that overall expenses in 2007 could turn out to be greater than a broad range Washington Mutual had given in its third-quarter conference call.