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A DAY LATE AND A DOLLAR SHORT

By
Real Estate Technology with Guardant Investments, Inc. BRE# 00592120

I presume most of us have heard that Wachovia has suspended their Pick-A-Pay Program.  Sort of like locking the barn door after the horse left the barn, corral, and the County. However, they also announced that they will no longer have early payment penalties and will waive the prepayment penalty on all their existing portfolio.  I guess after you lose 707 Million Dollars in the first quarter and have a 120 Billion Dollar Portfolio of this product you need to do something to make it easier for people to pay you off and reduce your potential liability.  Too bad they did not realize what their contribution was to the overall industry at lot earlier than now.

Oh well, better now than never.

Adam Brett
The Adam and Eric Group - Fullerton, CA
The Adam and Eric Group, Fullerton's Finest

There are a lot of these 'changes' going on at banks around here.  Some are shutting down brokerages, other's are stopping jumbo loans in their entirety.

Jun 30, 2008 03:42 PM
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

I think that you're right that they are covering their asses right now.  Though, while it's popular to bash the payment option arm, when it was used properly, it wasn't a bad program!  It became a bad program when people started using it to get people into homes that they truly couldn't afford.

Bob Mitchell

ValueList Real Estate Services, Inc.

Jul 01, 2008 07:58 AM