NOT GONNA HAPPEN
Wells Fargo is in talks with the Arizona Department of Housing to join a program providing principal reduction on delinquent mortgages using taxpayer dollars, a source familiar with the negotiations said Wednesday.
The program would fall under the $1.5 billion Hardest Hit Fund the Treasury Department disbursed last summer to states most afflicted by the foreclosure crisis. Arizona received $125.1 million through HHF.
“While we do support principal reduction as a way to help reach affordability for customers who are facing a financial hardship, we don’t believe it is an appropriate across-the-board solution,” stated Wells Fargo spokesman Tom Goyda.
Bank of America announced in March that it would begin principal reduction for delinquent Arizona homeowners using taxpayers dollars through HHF. It has begun sending out letters to eligible borrowers, targeting roughly 8,000. It will do the same in California as well.
Principal writedowns continue to remain elusive for homeowners, their advocates and the 50 state attorneys general who continue to negotiate a settlement in the nationwide foreclosure investigation.