These sorts of moves were inevitable. Washington Mutual has announced it will provide $2 billion to help some subprime mortgage borrowers refinance their loans--a bid to hold the line on more defaults. The move follows its announcement that it raised its 2007 guidance figure for bad-loan provisions to the $1.3 billion range from the $1.2 billion range. More banks are moving in similar directions. It's typical for them to start working with customers. Banks eat about $50,000 every time a mortgage goes bust. It can add up. Under the new program, borrowers with ARMs that will reset higher can apply for discounted rates. This is much better than a toaster.

For more:
- here's an AP article