Wells Fargo announced they will provide 2 billion worth of loan modifications to nearly 15,000 homeowners. In addition, Wells Fargo will be paying out nearly 32 million to homeowners who lost their homes to foreclosure. The Loan Mods and 32 million in payouts are directed at homeowners who had adjustable rate loans that resulted in much higher payments than they could afford.
Nevada and Arizona are set to sue Bank of American over Loan Mods. BofA is accused of providing false assurances to struggling homeowners that they wouldn’t lose their homes while their loan modification request were pending. Bank of America announced today they will begin resuming foreclosures after a holiday suspension.