CA vs. Wells Fargo Bank
In December 2010, Wells Fargo settled with then Attorney General Edmund G. Brown Jr. on the risky pick-a-payment loans made by World Savings Bank, a subsidiary of Golden West Financial Corp., and Wachovia Bank.
Wachovia purchased World Savings in 2006, and Wells Fargo acquired Wachovia in 2008.
Under the settlement Wells Fargo will offer loan modifications to an estimated 14,900 Californians, which allegedly will involve principal reductions and forgiveness. The total value of the modifications required by the settlement is estimated at more than $2 billion.
In addition, Wells Fargo will pay $32 million in restitution to more than 12,000 California pick-a-pay borrowers who lost their homes through foreclosure, plus approximately $1.8 million in costs to the state.
Payments to foreclosed homeowners are expected to average more than $2,650. See CNN Money article.
Filed under: Banks, foreclosure, loan modification, Mortgages, Uncategorized | Tagged: Adjustable-rate mortgage, Attorney general, California, Golden West Financial, Jerry Brown, loan modification, loan modifications with principal reduction, pay restitution to homeowners foreclosed upon, pick-a-pay mortgage settlement, pick-a-payment, settlement, Wachovia, Wells Fargo | 1 Comment »
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