Posted on 07 October 2010.
By DANNY KING Posted 6:00 PM 10/06/10
Homeowners struggling to repay adjustable-rate mortgages from Wachovia and World Savings Bank, subsidiaries of Wells Fargo (WFC)
, got some good news Wednesday. The company has agreed to pay $24 million to settle allegations of deceptive marketing about the risky loans from eight states and also to forgive more than $772 million in outstanding loan balances owed by more than 8,700 borrowers.The states’ probe was spurred by Wachovia’s so-called “Pick-A-Payment” adjustable-rate mortgages. Arizona Attorney General Terry Goddard
, who led the investigation, said in a statement that Wachovia — which Wells Fargo acquired after the loans were granted — failed to sufficiently inform borrowers of the risks involved in such loan programs. Wells Fargo said it had already forgiven $3.4 billion in loans
as of August.
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Posted in mortgage, Real Estate, rmbs, securitization, servicers, settlement, wachovia, wells fargo