Attorney General Reaches Agreement with Wells Fargo Providing More Than $388 Million in Mortgage Relief to Florida Homeowners

TALLAHASSEE, FL – October 6, 2010 – (RealEstateRama) — Attorney General Bill McCollum today announced a multi state agreement with Wells Fargo Bank over allegations of deceptive marketing of payment option adjustable rate mortgage loans (POA’s) by Wachovia Corporation and Golden West Corporation, before Wells Fargo acquired the companies. From April 1, 2010 through the term of the agreement, more than 4,000 Florida POA borrowers will be eligible for loan modifications that are expected to provide almost $388 million in mortgage relief in Florida. This sum includes more than $208 million in principal forgiveness for Florida homeowners. Overall, loan modifications will be offered to 8,700 borrowers in eight states with a total economic value estimated to be more than $772 million through mid-2013.