Sociable

Wednesday, December 22, 2010

Wells Fargo to modify $2.4 billion of loans in CA

 No details on how and what would be the new loan terms.  I don't think they will give principal reductions.
The $2.4 billion in modifications could increase if the economy deteriorates, Mr. Codel said. If the economy improves and unemployment goes down, Wells Fargo might not have to modify as many loans, he added.
The agreements essentially reflect loan-modification efforts put in place since 2008. But state attorneys general "were very worried that we were going to stop or slow down" modifying loans, and this is "an assurance that we continue," Mr. Codel said.
Wells Fargo has modified more than 50,000 "pick-a-payment" mortgages in California, most involving a reduction of the loan's principal. Those principal reductions total $2.9 billion. The deal includes the possibility of principal forgiveness even for stressed borrowers who make payments, Mr. Codel said.
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