mr. killinger? >> s.. >> then you halted the securitization until the problems were cleared up but they began again in 2004 at 52,005 the problems started erupting again with a surge of early payment defaults. wamu ended up with repurchasing almost a billion dollars in loans, suffered a 100 million-dollar loss. why didn't you halted the securitization in 2005 when those problems began to appear? >> senator, we entered long beach mortgage back in 1999 to help better serve that community. when we-- it was a relatively, very small part of our business and when they first encountered some of the securitization problems or some of the loan quality we sent a team and to work on that. we believe they made substantial progress with that and then they started to increase the originations again because we felt that the operational issues were under control. and then we started seeing additional evidences of difficulty there. the actions that we took were to change out management, to go in and do some organiza

mr. killinger. kerry, if someone were looking over our shoulders -- which i sure as hell wish they were -- they would probably be surprised we don't already have one in place. i mean, that's your e-mail. pretty good evidence contemporaneously. senator kaufman? >> thank you. mr. reich, what is a an income loan? >> i believe, i've been told that there's a little more documentation behind stated income, low-doc and no-dc oc loans than is obvious. those are catch-all terms, they are catchy term, but it's my understanding that there's a little more documentation than is popularly the popular conception. >> in a panel the other day, i asked them where the only income is the stated income. >> i think in many cases there is background checking of reasonableness for the amount of income reported depending upon the person's -- >> that's your testimony is that that was background checking on stated loans beyond -- >> that is what i have been told j. yeah. and that's oar. >> now, i'm not saying that was the cas