Connecticut and Wells Fargo Bank reached a settlement that will result in loan modifications for 1,535 homeowners and $741,465 toward the state’s efforts to stem foreclosures, authorities say.
Attorney General George Jepsen said the settlement stemmed from allegedly deceptive marketing of payment-option, adjustable-rate mortgage loans by Wachovia and Golden West Financial, two corporations Wells Fargo acquired in 2008.
The agreement provides that Wells Fargo will offer modifications to eligible, qualified borrowers who reside in their homes and who are either 60 days delinquent or facing imminent default.
Borrowers will first be considered for the federal Home Affordable Modification Program.
If the borrower cannot qualify or elects not to accept a modification under that program, Wells Fargo will consider the borrower for its modification program, known as Mortgage Assistance Program 2.
