Charlotte Observer (NC) (07/01/08); Rothacker, Rick
Wachovia announced this week that it will no longer offer so-called "Pick-A-Payment" mortgages, which had a minimum payment option that enabled borrowers to pay less than the interest owed. The Charlotte-based bank acquired these loans two years ago from Golden West Financial in a $24 billion deal made at the height of the housing boom. The loans have since soured faster than traditional mortgages, cutting into Wachovia's profits and stock price. Wachovia, which was one of the last major lenders still making adjustable-rate mortgages, will continue to offer a loan that gives borrowers three payment choices: an interest-only option, as well as options that pay the mortgage off in 30 or 15 years.
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