Washington Mutual's Acquisition of the National's U.S. Mortgage
Banking Operations At-A-Glance

Pricing:

Washington Mutual will pay a US$25 (A$49) million premium over the value of the acquired assets.

Washington Mutual acquires:

Servicing technology platform
Wholesale, correspondent and consumer direct production channels (wholesale $3.9 billion; correspondent $28.7 billion; consumer direct $1.5 billion in originations, YTD as of 9/30/01)
Performing pipeline and warehouse mortgage loans
Loan servicing sites in Jacksonville, Florida and San Antonio, Texas
Related corporate assets
Approximately 2,700 employees
Right to subservice the National's US$187.4 (A$363.9) billion servicing portfolio of U.S. direct loans (as of 9/30/01)
A right of first offer to acquire the National's mortgage servicing rights

The National Australia Bank retains:

Mortgage servicing rights and related hedges
Debt financing and related hedges

Summary of Assets and Liabilities Acquired By Washington Mutual

As of 9/30/01 – US$ in Millions

Assets:

Mortgage Warehouse
Cash and Other Assets
Total Assets Acquired

Liabilities:
Total Liabilities Acquired

Net Assets over Liabilities Acquired

$ 1,815
96
1,911

16

$ 1,895

HOMESIDE LENDING INC 8-K