Did Wachovia Corp. Use Deceptive Marketing To Sell Mortgage Products?

This lawsuit by Wells Fargo against Wachovia was just settled.

We’re seeing a ton of these civil suits to try to sort out the mess of the housing crash in 2007. Many clients feel they were sold a bill of goods when they were offered high yield risky mortgage-backed securities that turned out to be junk.

Have you ever heard of pick-a-payment mortgages? These mortgages gave people flexibility in the early years of the loan and let them choose how much they wanted to pay off that month.

Dow Jones says: Wells Fargo & Co. (WFC) has reached an agreement with Connecticut over allegedly deceptive marketing of mortgage products by Wachovia Corp. and Golden West Financial Corp., two troubled lenders that Wells Fargo acquired in 2008.

As part of the agreement, the San Francisco-based bank will consider roughly 1,535 eligible Connecticut homeowners for loan modifications. The bank will also provide Connecticut with $741,465 to support the state’s foreclosure prevention efforts.

The allegations date to claims that Wachovia and Golden West violated state consumer protection laws by failing to fully explain so-called “pick-a-payment” loans, specifically that borrowers choosing to make only minimum payments on such loans would in fact inflate the balance of their loans.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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