Article - Wells Fargo defers reckoning on troubled mortgage balances

[wow_in_CA]

_
_

Interesting article of where Well's head is in the Option Arm Crisis

Wells Fargo defers reckoning on troubled mortgage balances - MarketWatch
_
_
_
_

[Kimbly]

"Wells Fargo is wagering that an eventual rise in housing prices in the country's worst-hit regions, along with a rise in consumers' income, will eventually combine to cover the bank's billions in underwater Pick-A-Pay debt."

I think they are also wagering that some anti-deficiency laws will change in their favor while the 'owner' continues to pay interest only and realizes in 3,4,5,8 years that they are still seriously underwater and will walk away.

Robbing Peter to pay Paul????

[mimirayo]

Wow. They got them at 20% discount....even if they just gave people a decent mortgage they'd be making more money in the long run versus the risk off the loans failing.

This is where logic is defied. If this was YOUR business plan the bank would laugh you out the door.....but hey, they are "too big to fail" and the people they are messing with now are the ones who bailed them out...and will bail them out in the future. The FDIC, Sec. of Treasury, OCC......they all need to put a stop to such poor business practices!

[mimirayo]

"Heid, who runs Wells Fargo's mortgage-servicing unit, says most borrowers are motivated to pay their mortgages, even if they owe far more in mortgage debt than their houses are actually worth. One motivation driving borrowers is "kids and schools" having "a very strong play in why do people try and stay in their homes when they're under water," Heid said.
Teri Schrettenbrunner, a Wells Fargo Home Mortgage spokeswoman, said: "Not all people look at a house as just a house. They look at it as a home."





ARE YOU KIDDING ME?!?!?