Wachovia to the Rescueby Tim Manni
The Senate and Congress have debated over a housing rescue bill, designed to help businesses and homeowners who have been affected by the housing crisis, for months now. With each set of lawmakers passing their own versions and amendments to the bill, and the president’s threat of veto hanging overhead, the purported rescue has gone nowhere.
Wachovia, on the other hand, issued a press release this week outlining the bank’s current initiatives designed to help keep their customers out of foreclosure and in their homes.
The bank has eliminated all prepayment fees for its Pick-A-Pay mortgages. Pick-A-Pay is a type of Adjustable Rate Mortgage which allows borrowers to select among four options (minimum payment, interest only, 30-year fully amortizing, and 15-year fully amortizing) for their monthly payment.
Wachovia announced they will no longer offer products that include payment options that cause negative amortization. Within the last year, Wachovia says they have assisted 18,000 homeowners in making affordable payments that prevent foreclosure.