Washington Mutual shifts leaders

SEATTLE — Seattle-based Washington Mutual Inc. has announced changes in its top management to try to prevent a repeat of the customer service problems that have marred the aggressive expansion of the nation’s largest thrift.

Washington Mutual’s second-highest-paid executive, Craig Davis, 52, retired Tuesday as head of the company’s mortgage and insurance business after seven years with Washington Mutual and 25 years in the financial industry.

Deanna Oppenheimer, an 18-year Washington Mutual veteran, was put in charge of retail banking, insurance, home loans, the retail brokerage and other consumer businesses.

Craig Chapman, head of the company’s specialty finance group, was appointed to oversee commercial banking, real estate and multifamily lending.

The changes come less than a month after Washington Mutual settled a lawsuit representing 1,000 customers over complaints regarding lost mortgage payments, erroneous fees and mishandling of property tax payments. The bank agreed to review the complaints and resolve disputes individually.

Washington Mutual, which has acquired banking operations in California, Texas, Illinois, Florida and New York since 2000, has added 1.8 million checking accounts in the past 18 months. It reported a total of 7.6 million at the end of June.

Retail banking fees have grown to about one-third of nonloan income, the company said.

Washington Mutual expects future growth chiefly from individual and commercial customers as the mortgage market cools with rising interest rates, chief executive Kerry Killinger said in a statement.

With two executives — Oppenheimer and Chapman — rather than three in charge of individual and commercial customers, there should be less chance of internal confusion, he added.

"For the better part of a decade, our management team focused on building scale and leading national positions," Killinger said.

Now, "we have focused increasing attention on developing a more integrated approach to managing these businesses," he said.

Davis, who received $2.1 million in compensation last year and options worth millions more, left amicably, spokesman Alan Gulick said.

Oppenheimer, 45, led Washington Mutual’s rapid retail banking growth, including the opening of 250 offices in New York, Chicago and elsewhere this year.

Tony Meola, previously in charge of customer service for home loans, has been promoted to oversee sales and distribution for home loans.

Meola has been credited with helping the company resolve lost paperwork, erroneous fees and other customer hassles.