 |
Wachovia quits offering risky mortgage loan
04:09 PM CDT on Monday, June 30, 2008
CHARLOTTE, N.C. – Beleaguered consumer bank Wachovia Corp. will quit offering a mortgage payment option that allows borrowers to pay less each month than the bank charges in interest.
The choice to pay less was one of the options of Wachovia's controversial Pick-A-Payment mortgages, which offer customers four different payment options each month.
Wachovia told The Associated Press on Monday that it will no longer offer the less-than-full interest payment option on all new home loans.
Critics have said such paying less than the amount of interest charged can lead to negative amortization, in which the borrower owes more than the value of their home, increasing the chance of foreclosure.
Check Screen Name Availability
Screen names can only consist of letters and numbers.
Blotter: Woman reports struggle with mother’s date
Football: Beshears takes advantage of opportunities for Ryan
Jazz library a high note for UNT
Officials: Rayzor cutting red tape
You must be logged in to contribute. Log in | Register Now!
You are logged in as screenname | Log Out
You are logged in, but do not have a "screen" name. Update Your Profile