Wells Fargo Agrees to $2 Billion in Loan Modifications

[Godhumor]

Source: Bloomberg

Wells Fargo & Co. agreed to provide loan modifications worth more than $2 billion to California homeowners who have “pick-a-pay” loans, California Attorney General Jerry Brown said.

Wells Fargo, the largest U.S. home lender, also will pay $32 million to borrowers whose homes were lost in foreclosure, Brown said today in a statement.

Pick-a-pay, or pay option adjustable-rate mortgage loans, allowed borrowers to make payments at various levels, according to Brown. The highest level fully covered the monthly interest and principal due, while another level covered interest only. At the minimum level, payments were insufficient to cover the monthly interest owed, with unpaid interest added to the loan balance.

“Customers were offered adjustable-rate loans with payments that mushroomed to amounts that ultimately thousands of borrowers could not afford,” Brown said in the statement. “Recognizing the harm caused by these loans, Wells Fargo accepted responsibility and entered into this settlement with my office.”



Read more: http://www.bloomberg.com/news/2010-08-11/wells-fargo-should-pay-203-million-in-overdraft-fees-lawsuit-judge-rules.html

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Good for Jerry. Hopefully, this will provide a little relief to those who were crushed when California's real estate bubble burst.

[RUMMYisFROSTED]

1. My first thought: If they settled, a rip-off is in progress.

[OregonBlue]

3. Jerry Brown is no light weight. I think we should be happy about this.

[CountAllVotes]

2. good on you soon to be Governor Brown

:patriot: :D

:kick: & recommend.

[xchrom]

4. Recommend

[nradisic]

5. I am in NJ and trying to get a Wells Fargo Modification...

I can only hope that this is good news for our own Wells Fargo modification on our home in NJ...It is certainly a positive sign to see Wells Fargo attempting to remedy the situation in California...hopefully it bodes well for us too.

[louis-t]

6. I hope so, too. Especially after the 4 largest banks have

released statements that they don't want to cooperate with the modifications. I'm going through it with BoA.

[Kingofalldems]

7. Get em Jerry