Washington Mutual, which is under pressure from the New York Attorney General's office over suspected fraudulent appraisal practices at a former vendor, is apparently making big changes to its secondary mortgage market business, and might pull the plug on the business altogether, according to market sources familiar with the situation.

At press time, it was unclear what changes were afoot for WaMu. A decision to scale back its mortgage securitization and trading activities could also lead to major dismissals in the ranks of its MBS professionals, said those sources. At press time, announcements of changes in WaMu's MBS business were expected on Monday.

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