Report: Wachovia halting some loans in Inland Empire, Central Valley

Wachovia Corp. is halting Pick-A-Payment mortgage loans in the Central Valley and Inland Empire, according to a report in The Charlotte Observer.

In the 17 counties in the two regions, Wachovia will cease to offer mortgages to keep in its own portfolio, which would be the Pick-A-Payment loans, but, will still offer loans that can be sold to investors, the report says.

According to the report, the move will not affect current mortgage owners.

The Pick-A-Payment program offers customers four different payment options each month. The product came over with Wachovia's (NYSE: WB) purchase of Golden West Financial Corp., the report said.

The report said that about 60 percent of the Pick-A-Payment mortgages are in California, and, while those mortgages have a higher delinquency rate, especially in the two areas in question, the overall Pick-A-Payment portfolio remains profitable.