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ARMs in Wachovia's closet

ARM (negative amortization option pay adjustable rate mortgages)
sales training at World Savings:

"So if I'm paying that minimum payment, I'm not actually
putting a dent in my principal though right? My principal and
interest they're just going to keep climbing up right?" the
borrower asks in the video tape. "It's optional," the broker
in the video replied.

Oakland, California's Golden West Financial Corp., the No. 2 U.S.
savings and loan specialized in ARMs, which comprise about
99 percent of its mortgage lending.

World Savings and Golden West are both now part of Wachovia.


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