Updates to the Wachovia Cost of Savings Index (COSI) (formerly known as the World Savings COSI) are no longer being provided to the public by Wachovia. Wachovia loan representatives don’t even have the COSI numbers, because they are no longer originating COSI loans. Wachovia will provide its COSI loan customers the current rate on their monthly statements. This may only be relevant to borrowers who have World Savings/Wachovia adjustable mortgage loans using the COSI as an index; but there are a lot of these loans out there.
Wachovia will soon be acquired by Wells Fargo Bank. We anticipate they would try to get rid of this index altogether and come up with a substitute index. This has precedence and is usually allowed in the terms of the loan documents. The index was changed when Wachovia acquired Golden West. Also, when Fannie Mae stopped publishing LIBOR rates, many loans that were tied to the Fannie Mae LIBOR were changed to a different LIBOR rate index.
Since we won’t have a source for the data, we will no longer be able to consistently publish the COSI rate. We suggest current customers use the comments section of this post to keep each other updated as to the current rate. The rate for the previous month is usually calculated by the 15th of the current month.