AG Gansler: Wells Fargo Settles Over “Pick-a-Payment” Mortgages
Company offers loan modifications and pays nearly $1 million to consumers
BALTIMORE, MD ( Jan. 5, 2012) – Attorney General Douglas F. Gansler announced today that his Consumer Protection Division has entered into an agreement with Wells Fargo over the allegedly deceptive marketing of adjustable rate mortgages written by Wachovia and Golden West Financial, companies that Wells Fargo acquired in 2008. In addition to loan modifications for certain consumers, Wells Fargo has agreed to pay $940,056 to the Office of the Attorney General for restitution to “Pick-a-Payment” borrowers who lost their homes in foreclosure.
“Especially in these difficult times, we focused this agreement on securing relief for vulnerable homeowners and those who have faced foreclosure,” said Attorney General Gansler. “Wells Fargo is addressing these particularly troubling issues with mortgages issued by companies that Wells Fargo acquired.”
According to the agreement, Wachovia and Golden West offered borrowers a choice among several programs. Borrowers could choose a traditional, 30-year fixed rate, fully amortizing loan; a traditional, 15-year fixed rate, fully amortizing loan; a loan with payments of interest only; or a loan with payments that were less than the interest actually due. According to the Consumer Protection Division, Wachovia and Golden West did not fully explain to “Pick-a-Payment” borrowers who chose the fourth option that their minimum payments would not cover the full interest and that their principal debt would actually increase over time.
Under the terms of the agreement, Wells Fargo will consider loan modifications for Maryland homeowners who have “Pick-a-Payment” contracts, using the federal Home Affordable Modification Program. If the homeowner is not eligible for a HAMP modification, then Wells Fargo will use its own proprietary loan modification program. The modifications may include principal forgiveness, loan extension, interest rate reduction and/or principal forbearance, depending upon the circumstances of the borrower.
The Consumer Protection Division will contact consumers who may be eligible for restitution funds under the settlement. In addition, the agreement will benefit homeowners who obtain loan modifications.
Eleven other Attorneys General across the country have reached similar agreements with Wells Fargo. For additional information, consumers may call the Consumer Protection Division hotline at (410) 528-8662 or toll free at (888)743-0023.
SOURCE: Maryland AG
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Our mayors, judges and public officials swear to an oath of office to up hold the U.S. Constitution, which has become road kill in every court and every public office. Breach of oath of office is a ten year statute of limitations in Washington state any ways. When our rights are not upheld, and our government officials support the banks and make little things like a million dollars look like they did something, and allow our Constitutional rights to become road kill by a brinks truck, we need to make our officials accountable and VOTE them out. Look a Pam Bondis big help. She goes after the little guy to make it look like she is doing something, when in reality she is getting rid of the competition for her big bank fellowmen. And doing nothging to bring the big banks to justice. Is a million dollars suposes to excite us peons? Wow a million dollars, not to mention the billions stolen by the banks, but then we are not exspected to think that big. Well Banksters we do and we are awake to your friends and your frauds. We will fight for the bigger picture, not the pebbles of bread. We will fight for America and our children and our future, We will not except this illusion something is being done. The cat is out of the bag and you have been exposed and you will never be trusted by borrowers nor investors. I read the investors are after their jugulars and rightfully so. They stole their wealth and our homes. Hope the investors get everything they deserve from these S.O.B’s and we will benefit from their success as well. No Ameican homeowner ever exspected a free house, we exspected to be treated fairly and have jobs, incomes, businesses, work for our employers and pay our bills. Not be screwed out of our futures by predator debt collector parasites. I pray for the investors and the borrowers we see a better American this year. Hey Banksters you could pull the wool over our eyes for a while, and pull the wool over the investors for a while, but we are all awake now and we are going to make sure you pay for your sins.
And what about the millions of homeowners that were already foreclosed under these pick a payment plan mortgages? after 3 years of foreclosures they got this small agreement? Trillions GONE !
We will fight for the rights of those already in the streets too!
Here’s another example of the borrowers not getting any justice, just more harm.
http://www.judicialwatch.org/blog/2012/01/doj-steers-countrywide-settlement-cash-to-leftist-groups-with-dem-ties/
Readdocs, you’re hopelessly confused. You’ve been urged to turn off FAUX news, but you won’t do it.
how about that I live in Maryland , wrote to the Attorney General and was told this is a Federal Institute they do not handle this….. wow, my response letter was great and told them to get a backbone and fight the thieves that are ripping off americans. Well seems like they do handle this (kind of ) I have a satisfaction certificate with four robo signers, two deeds of trust (same loan) a blank “note” what more ohhhh. wait and none of the dates match up to the paperwork,,,,,,, really and can get no help … Wells Fargo thinks they will win, think again I have nothing but time and plenty of paper and a roll of stamps…. Game On We F*ck Home Mortgagees……. (WFHM)
What about Countrywide victims with a Pick A Payment loan who are now stuck with BOA/US Bank – Especially in NV, CA, and AZ where these loans were prevalent? Does anyone have info on this?
You’re kidding me. Wells should’be been slapped with a monetary settlement that would actually “hurt” to send a message that this is not an action that will be tolerated. This is an absolute joke and an insult to the residents of the State – in particular those who lost their homes who have otherwise been caused pain and suffering.
I actually had to read the number twice to ensure I didn’t miss the dollar figure.
Pick-A-Payment Part II. This isn’t a settlement. It’s a joke. Maryland taxpayers probably paid many times over for just the legal work involved that your Attorney General was able(inable) to work out with Wells Fargo.
This is favorable to Wells Fargo. Pick-a-payment is a criminal swindle. So, as part of an “agreement” ( as opposed to criminal prosecution and jail time) they need to “consider” whether people qualify for a HAMP mod. Oh yeah, and they need to pay a modest fine, it’s like giving Stumph a traffic ticket.
Wow. What’s the point of that fine? Wells Fargo can certainly afford to pay it, and for what purpose will the AG office use that money to help those defrauded?
They should give back home to buyer who may very well not qualify at all now for loosing job and other issues…
They should do something for the People who received a loan through Lend America & Wells Fargo bought the loans off of Lend America,with all the Fraudulent Activitys that was hiden from FHA/HUD Mortgage loans through Lend America someone should be looking out for the Homeowners that were victums from their Criminal Acts of overlooked regulations.