A story in the American Banker today says Wells Fargo has agreed to modify $2 billion in payment-option adjustible rate mortgages, all of them originated by Wachovia and World Savings.
These were known as "pick-a-pay" loans and were considered especially at risk for default.
The agreement reportedly came through a settlement negotiated by California's Governor-elect Edmund Jerry Brown and will affect 14,000 homeowners there.
I've asked Wells Fargo/Wachovia whether this will impact any Florida borrowers. I'll let you know what I hear.