Wells Fargo To Modify 15,000 Adjustable-Rate Loans

LOS ANGELES (AP) — California Attorney General Jerry Brown says Wells Fargo Bank N.A. has agreed to modify adjustable-rate loans made to nearly 15,000 Californians by lenders that it acquired.

Brown announced Monday that the roughly 14,900 modifications will be worth more than $2 billion. He says the bank also agreed to pay $32 million to thousands of borrowers who lost their homes to foreclosure.

The deal applies to so-called pay option-adjustable rate mortgages made by Wachovia Bank and World Savings Banks. Wachovia Bank bought World Savings in 2006. Wells Fargo then purchased Wachovia in 2008.

Brown says the loans were harmful because their payments ballooned to amounts that unsuspecting borrowers could not afford.

Wells Fargo did not immediately return an e-mail from The Associated Press seeking comment.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • Carlsbad

    I am with Bank Of America….. Wells Fargo is the investor n my loan…go figure..
    I have been in the process of a loan modification for 17 months!!!

    I keep being told by B of A that the hold up is Wells Fargo.

    What Gives how about paying attention to your own investments?

  • Mikey

    That a boy Jerry…Meg would have given them a tax break!

  • Torrance

    in the same boat. I myself is with Wells Fargo where BofA is the processor and they are not doing anything to review our case. Keep getting the run around. Same situation with a friend of mine that has been in the works of modifying with Wells Fargo where the processor is ASC and they have been trying for almost 24 months! Go figure.

  • Jill St. James

    The banks want to keep the loans in default to sell them as a kind of future. Jerry Brown will keep working for consumers! He can’t be bought off!

  • Los Angeles

    Let’s go after Indy Mac now Jerry !!!

  • Jose rodrigues

    Please keep me posted on this matter since I had wells Fargo n I lost my house as well.. Thanks

blog comments powered by Disqus
Sandwich Generation

Listen Live