In one of his final acts as California Attorney General before taking office as California’s next governor, Jerry Brown has announced that Wells Fargo will be extending loan modifications worth up to $2 billion to borrowers to whom it underwrote “pick-a-pay” loans. In addition, Wells Fargo has agreed to pay another $32 million to borrowers on whom it foreclosed.
The settlement includes loans made by Wachovia Bank and World Savings Bank, both of which were acquired by Wells Fargo.
Approximately 14,900 Californians borrowed money under the pick-a-pay program.
Read the press release issued by the Office of the California State General.