Posted by LisaWI on 9/29/08 8:15am
Msg #265671

CitiGroup to Buy Wachovia

http://news.yahoo.com/s/ap/20080929/ap_on_bi_ge/wachovia_citigroup;_ylt=ApA0vSuqK_9F9dOtmwUvVYpv24cA

They are now among the Big Three, BOA, JPMorgan and now Citi.

Reply by LynnNC on 9/29/08 9:20am
Msg #265677

The World Savings purchase was the beginning of Wachovia’s problems. World Savings, with their huge portfolio of “Pick-a-Pay” mortgage loans was just waiting to implode. The loans, also known as option ARM mortgages, allowed borrows to defer or prepay interest at will by offering four monthly payment options. Borrowers who used the minimum payment option every month would lose equity due to negative amortization.

I closed a few of the loans and knew that they would lead to problems for the borrowers and Wachovia. I even called the manager of my Wachovia branch to tell him that

Reply by sue_pa on 9/29/08 9:58am
Msg #265680

I also did quite a few of the pick-in-pay loans. I'm guessing 90+% of the borrowers truly didn't understand the product and also took it for the wrong reasons - low payments.

Reply by 101livescan on 9/29/08 10:51am
Msg #265682

Me, too, lot of World Savings up in my neck of the woods. Wachovia was brave to buy World Savings....a majority of the paper they lent was pick a payment option. This was the downfall of Downey, World and WAMU, with their 1% teaser rate, then adjustable annually. I think most people thought they would either sell or refinance sooner or later, but later never came because of the market imploding last July 2007.

Reply by Oz/Fl on 9/29/08 7:49pm
Msg #265792

So you closed them anyways, right? Duh!!

Reply by sue_pa on 9/30/08 10:10am
Msg #265832

you are an idiot

Of course I closed them. Who am I to determine what is a good loan for home owners. I've also done negative amorts., 50 year loans, balloons, adjustables, and every other 'subprime' product out there. I "get papers signed". I am not their financial advisor.