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Pick-A-Pay Goes Away...

Posted on June 30, 2008

When Wachovia bought Golden West Financial two years ago, executives at the Charlotte-based bank gushed about how they could take the Pick-A-Pay mortgage that was Golden West s signature product and expand it to the rest of its customer base nationwide. The product was a mortgage that gave borrowers several choices each month on how much to pay a regular payment (the kind you d make on a 30-year mortgage), a payment covering only interest, and a minimum payment that only covered a portion of the interest due and lumped the rest back on top of the principal amount. That created a si...

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