Key, Wells, Chase ... Picking Up WaMu's Castaways in Seattle

Rising defaults and delinquencies on loans, houses staying on the market longer and fetching less-than-hoped-for prices when they do sell, a weakening economy -- sounds like a great time for banks to get into or expand their presence in the mortgage business.

Yet several banks in this region are doing just that.

And they've got just the place to go to recruit people they need to increase the number of home loans they write: Former Washington Mutual employees.