Qualifying “Pick-a-Payment” Mortgage
This is a mortgage loan originated or acquired by Golden West Financial Corporation or Wachovia Corporation or one of their affiliates such as:
- World Savings Bank, FSB
- World Savings and Loan Association
- Wachovia Corporation
- AmNet Mortgage, LLC
- American Mortgage Network, LLC
- Wachovia Mortgage, FSB
- Wachovia Bank, FSB
- Wachovia Bank, N.A.
Wells Fargo did not originate these loans, but purchased the portfolio of these Pick-a-Payment mortgages from Wachovia in December 2008.
The Pick-a-Payment mortgage loan allowed the borrower to select and make a minimum payment for a limited time and subject to certain conditions. In particular, for each monthly payment, the borrower could choose from four options:
- make a fully amortized interest and principal payment such that the loan would be satisfied in the traditional 30-year term;
- make a 15-year fully amortized payment;
- make an “interest only” payment, or
- make a lesser “minimum payment” that would not cover the interest owed