Risk was supposed to be off the table. Banks were supposed to behave responsibly. That hasn’t happened. Instead, as the Wall Street Journal reports, Wells Fargo is converting option ARM loans into interest-only loans. That does little to solve the underlying problems of mortgages. Why not modify the original option ARMs into 15- or 30-year fixed-rated loans at the original teaser rates? Banks like Wells Fargo might make less money on the loans, but homeowners wouldn’t be saddled with perpetual debt. Isn’t saving the country worth it? Read The Wall Street Journal’s full article…
Do you own a law firm? Would you like to utilize our mortgage auditing services for foreclosure defense cases? Contact MFI-Miami now.
