Wells Fargo gives the new solution to Wachovia at-risk customers

Wells Fargo Home Mortgage, one of the nation’s leading retail mortgage lenders and services one of every seven mortgage loans in the nation, with the completion of the Wells Fargo / Wachovia merger, started actively use current streamlined approaches and new customized solutions to avoid preventable foreclosures for Wachovia mortgage customers.

Wells Fargo increased its full-time default/home retention staff 125 percent to almost 6,000 in the last two years to help customers with solutions, Wachovia increased staff 330 percent to almost 2,000 last year alone. In 2009, Wells Fargo will continue to further increase these teams, all U.S.-based. 
In total, 478,000 Wachovia customers – including those with Wachovia Pick-a-Payment loans – will have access to the program, primarily those whose loans are delinquent or are likely to become delinquent will be eligible for assistance. The exact number of customers expected to be helped in this approximate $120 billion portfolio cannot be provided, in the situation of changing economic factors. Customers with loans being referred to foreclosure or that are in foreclosure will receive an extension until Feb. 28, 2009 to allow them time to contact and work with Wells Fargo on the new solution. 

According to the words of Mike Heid, co-president of Wells Fargo Home Mortgage, the goal of the modification is to achieve sustainable and affordable mortgage payments generally targeting a 38 percent mortgage payment-to-income ratio. The company will continue to work case-by-case with all at-risk customers to understand their financial situations to determine if lower levels may be appropriate.