Wells Fargo Agrees To Modify 15,000 Calif. Loans

[Kadie]

Wells Fargo Agrees To Modify 15,000 Calif. Loans
December 20, 2010 4:45 PM

LOS ANGELES (AP) — Wells Fargo & Co. has agreed to modify some 14,900 adjustable-rate loans made by banks it acquired, according to filings released Monday by state prosecutors who said the mortgages were harmful to borrowers.

The agreement with the state attorney general’s office will result in more than $2 billion in principal write-downs, interest-rate reductions and other concessions through the end of June 2013, Wells Fargo Home Mortgage chief financial officer Franklin Codel said.

The deal applies to mortgages marketed as “Pick-a-Payment” loans by Charlotte, N.C.-based Wachovia Bank and World Savings Bank, a subsidiary of Oakland, Calif.-based Golden West Financial Corp.

Wachovia bought World Savings in 2006 and San Francisco-based Wells Fargo purchased Wachovia in 2008.

The mortgages were so named because their terms allowed borrowers to make payments at various levels each month, including a payment option that increased the loan’s principal by covering less than the monthly interest owed.

more...
http://sacramento.cbslocal.com/2010/12/20/wells-fargo-agrees-to-modify-15000-calif-loans/

[babylonsister]

1. Excellent news! Thanks, Kadie! nt