Wells Fargo Agrees to Modify $2.4 Billion of California Mortgages

By Kyle Chezum Updated on 12/21/2010

12/21/2010

Wells Fargo, the fourth largest bank in the nation, has reached an agreement with California governor Jerry Brown to make $2.4 billion of mortgage modifications for California homeowners stuck in adjustable rate mortgages.  The bank has also agreed to provide $33 million to the state in order to help lessen the effects of foreclosures in California communities.

The bank and the state seem to have reached a mutually beneficially arrangement without much of a struggle.  Franklin Codel, chief financial officer of the Wells Fargo's mortgage unit, is pleased with the deal and says he would “love to get all 50 states in.”

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