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budginew
44 Posts |
 Posted - 07/02/2008 : 10:53:09 AM
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Hello all,
I just heard from a little birdie that Wachovia is, effective immediately, waiving all prepayment penalties on thier portfolio pick-a-pay loans. Additionally, they are no longer offering neg-am products...at least in California.
This is a good opportunity to contact those previous clients that have been waiting for thier prepay to expire before selling or refinancing.
Can anyone corroborate? |
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katbunk
2172 Posts |
Posted - 07/02/2008 : 10:54:54 AM
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| Was the birdie via e-mail, personal friend, phone call, memo? How much do you trust the birdie? |
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djorge44
1571 Posts |
Posted - 07/02/2008 : 10:56:40 AM
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| This is old news (as in was posted 1-2 days ago). Prepays on Option Arms are waived |
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CoralSnake
10880 Posts |
Posted - 07/02/2008 : 10:57:30 AM
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The birdie in my case was 2 days ago via email from my Wachovia rep.
They are no longer offering any neg-am loans. At all.
No prepays on new loans, and no prepays for loan in their portfolio already.
Let me see if I can find the email. |
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budginew
44 Posts |
Posted - 07/02/2008 : 10:57:46 AM
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| A friend, not a best friend, but we've BBQ'd on occassion. No reason not to believe him. |
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budginew
44 Posts |
Posted - 07/02/2008 : 10:58:45 AM
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| I guess I'm a little slow. Thanks. Looks like it's time to upgrade my membership. :) |
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mganovsky
2070 Posts |
Posted - 07/02/2008 : 10:59:49 AM
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It is true I received a memo yesterday concerning Wachovia not doing neg am loans as of 5pm yesterday. Also the memo said they were waiving the pre-pay on all pick a pay loans.
Seems to me they see the hand writing on the wall when these loans recast. I think it is good that they are at least trying to allow folks to refi and get out of the toxic neg AM loans. |
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CoralSnake
10880 Posts |
Posted - 07/02/2008 : 11:01:08 AM
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From my Wachovia rep via email transmission on 6/30/2008:
"As you may have heard, the Pick a Payment loan is being discontinued as of tomorrow. Although we will still offer Portfolio loans, none of them will offer the low payments that can lead to negative amortization. My understanding is that we will offer the No Neg Am ARM (a COSI or CODI loan that has a rate change every 6 mos and offers interest only payments for 5 years), the COSI or CODI loan without pay options, and a 30 year Portfolio fixed. I will have more details once the new rate sheet comes out in the next few days. Max YSP will now be only 1.
And lastly, no loans will have prepay penalties on them. This includes new loans as well as loans already in our portfolio.
I will keep you informed as I receive more information. Thank you."
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financeone
1646 Posts |
Posted - 07/02/2008 : 11:02:05 AM
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on 6/30/08:
To: Vertice Wholesale Brokers
Subject: Changes to Wachovia Pick-a-Payment Loan Product
Vertice is committed to maintaining our broker relationships and continuing to offer a variety of wholesale loan products. While the Pick-A-Pay loan has been a solid product for Wachovia customers, it is extremely important to provide flexibility to customers who may want another mortgage product in this challenging housing environment.
Effective immediately, on all new originations Wachovia will discontinue any mortgage product offerings with payment options that would allow a customer to go into negative amortization.
Additionally, Wachovia is waiving all prepayment fees associated with its Pick-A-Pay mortgage to allow customers complete flexibility in their home financing decisions. This includes all new and existing Pick-A-Pay mortgages on 1-4 unit residences.
Proactively waiving prepayment fees and eliminating the negative amortization option on the Pick-A-Pay products gives customers the freedom to manage their current financial situation more effectively.
Vertice greatly values our broker relationships, so we wanted to make you aware of this new policy as soon as possible.
You may choose not to receive advertising messages from Wachovia by sending an email to verticeoptout@wachovia.com. This action will not affect delivery of email subscriptions or other emails that do not constitute advertising messages. Wachovia Corporation, 301 South College Street, Suite 4000, One Wachovia Center, Charlotte, NC 28288-0013.
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These materials are intended for distribution to mortgage professionals only – not for consumers. All loans originated by American Mortgage Network, Inc, dba Vertice or Wachovia Mortgage Corporation, dba Vertice. Vertice is an Equal Housing Lender. Loans originated by Vertice are subject to credit approval, verification and collateral evaluation. Products not available in all states and are subject to change without notice. Certain restrictions apply. 3/12/07
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tammym
60 Posts |
Posted - 07/02/2008 : 11:03:43 AM
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| They did a press release about it, it is no secret |
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jhaaland
93 Posts |
Posted - 07/02/2008 : 11:05:15 AM
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| has anyone heard of prepays being waived with other neg ams thru other banks |
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