Last week, I discussed possible outcomes of the Goldman Sachs audit of Wachovia’s loan portfolio. Goldman was just hired, and already this week Wachovia announced that they’re discontinuing the negative amortization option on their Option ARMs. This is the case I was making when discussing it last week. Option ARMs have come to be defined
Wachovia
Wachovia, the last name-brand player besides Countrywide still active in neg-am Option ARMs, has hired Goldman Sachs to evaluate its loan portfolio. Wachovia’s slogan on their wholesale broker rate sheets is “We Lend Our Own Money, We Make Our Own Rules.” That seems likely to change as outsiders exert more influence over the process. But
Yesterday the news of Vallejo, California’s bankruptcy, and Wachovia’s head of Commercial Lending leaving, was overshadowed by Fannie Mae. Fannie Mae threw some chum into the water for loan agents in high balance areas, saying that it will buy jumbo mortgages for the same prices as smaller loans. Some random notes: Fannie is expecting the