Tuesday, December 21, 2010

Wells Fargo Agrees to Modify California Mortgages

San Francisco Business Times - by John Sailors

Wells Fargo & Co. said Monday it will make up to $2.4 billion in mortgage modifications for homeowners in California with "pick-a-payment" adjustable-rate loans, as pat of an agreement with Attorney General Jerry Brown.

San Francisco-based Wells Fargo (NYSE: WFC) also agreed to pay $32 million to borrowers who lost their homes through foreclosure.

The loans were issued by Wachovia Corp. and Golden West Financial Corp. Wells bought Wachovia after that bank bought Oakland-based Golden West Financial Corp. for $24 billion in October 2006.

The majority of the more than 50,000 at-risk Wachovia Pick-a-Payment customers are in California, Wells said.

Wells will offer loan modifications to nearly 15,000 California borrowers with the loans.

Many of the modifications will include “significant principal forgiveness.”

California joins nine other states in entering agreements with Wells Fargo. The others are Arizona, Colorado, Kansas, Florida, Illinois, Nevada, New Jersey, Texas and Washington.

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