Maryland AG, Wells Reach Settlement On Charges Involving Alleged "Pick-A-Pay" Mortgage Loan Ripoffs

In Baltimore, Maryland, The Baltimore Sun reports:

• Under an agreement announced Thursday by the Maryland Attorney General's Office, Wells Fargo has agreed to make loan modifications and pay nearly $1 million in restitution to customers of two lenders acquired by the bank.



• The office's Consumer Protection Division, which reached the agreement with Wells Fargo, said lenders Wachovia and Golden West Financial used deceptive marketing in offering consumers adjustable-rate home loans.



• Wells Fargo will pay $940,056 to borrowers with "Pick-a-Payment" mortgages written by Wachovia and Golden West who lost their homes in foreclosure, the agreement says. Wells Fargo acquired the two lenders in 2008. So far about 250 borrowers in Maryland with "Pick-a-Payment" mortgages are known to have lost their homes to foreclosure, but that number could grow, said David Paulson, a spokesman for the Attorney General's Office.



• In addition to the agreement in Maryland, Wells Fargo has signed similar pacts with attorneys general in 11 states.

For the story, see Wells Fargo agrees to pay restitution to mortgage borrowers (Consumer Protection Division alleges deceptive marketing of loans).