Wells Fargo has decided, at least as it stands, to convert their Pick-A-Pay option ARMs into glorious interest only loans for periods of six to ten years.

The fascinating thing about the Fannie Mae initiative and the Wells Fargo program is that homeowners are converted to renters.

But -- and this is key -- without having to take loan losses on their books, as they are still "pretending" the properties are still in non-delinquent loans at close to the original loan value!

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