Wells Fargo Expanding California Loan Modifications

Wells Fargo plans to make $2.4 billion in mortgage modifications in California and is still working towards expanding this same forgiveness to other states. The program is specifically targeting homeowners who had “pick a Payment” adjustable rate loans that ballooned far and above what the homeowner was able to pay. Wells Fargo has already modified about 50,000 of these loans and according to the attorney general’s office, Wells Fargo has already paid $33 million to California customer outreach. Many of the loan modifications, also include a reduction to the loan’s principal.