Monday, June 30, 2008

Wachovia Waives Refi Fees for Pick-A-Pay, Discontinues NegAm Products

by Bill McBride on 6/30/2008 02:24:00 PM

Note: Pick-A-Pay is Wachovia's Option ARM (adjustable rate mortgage) product with a NegAm (negative amortization) option.

Press Release: Wachovia Corporation Announces Assistance for Pick-A-Pay Customers

Effectively immediately, Wachovia is waiving all prepayment fees associated with its Pick-A-Pay mortgage to allow customers complete flexibility in their home financing decisions.
...
Additionally, for all new loan originations, Wachovia is discontinuing offering products that include payment options resulting in negative amortization.
Obviously Wachovia wants people to refinance out of their current Option ARMs. The NegAm products are really hurting Wachovia.