"Buy what Wells is starting to do with those discreet loans that are option arm loans that they inherited, that they bought from Wachovia, is they're reducing principle and what we understand from them, that's the first thing that they look at when they try to modify those loans," said Kevin Stein from the California Reinvestment Coalition.
By reducing principal, Wells Fargo is reducing the amount owed by homeowners, especially those whose homes are now underwater. The California Reinvestment Coalition called on other banks to do the same.
