Skip to main content

Loan mod recipients get clear description of new terms through Bank of America's Clarity Commitment

NationalMortgageProfessional.com
Dec 29, 2009

Bank of America Home Loans has begun providing its exclusive Clarity Commitment to customers entering permanent mortgage modifications under the government's Home Affordable Modification Program (HAMP). The Clarity Commitment, an easy-to-understand, one-page summary of key terms, will be offered with loan modifications made under any non-government program in the coming weeks. Responding to consumers seeking simplified explanations of credit products, Bank of America introduced the Clarity Commitment for customers taking out new first mortgages in April, leading the industry in providing clarity, simplicity and transparency to customers. The bank later extended the concept to home equity loans and reverse mortgages, and recently launched a Clarity Commitment for credit card customers. "Our Clarity Commitment for new mortgages has been very well received as a demonstration of our dedication to responsible lending and the creation of successful homeowners," said Rebecca Mairone, national servicing executive for Bank of America Home Loans. "Modified mortgages may have considerably different terms than the original contract. As our customers transition to their new affordable payment, it is important that they have this simple and concise explanation of the terms of their modified loan." The Clarity Commitment for loan modifications summarizes: ► The new principal balance and all charges included in it. ► The new interest rate. ► The total monthly payment at the outset of the loan and, if applicable, at each point that the rate and payment will adjust through the life of the loan. ► The initial amount of any escrow payment included for such things as taxes and insurance, with an explanation that these charges may change during the life of the loan. ► On eligible HAMP modifications, the incentive payments homeowners may earn toward reducing their principal balance if they make timely payments over the first five years. Homeowners participating in HAMP will receive a Clarity Commitment statement with their modification documents. Their modification package is sent after they successfully complete a trial payment period. Those who are being offered assistance under other programs will receive the Clarity Commitment with the documents to be signed for their modification. Bank of America services 14 million residential mortgages, more than any other financial institution. Since January 2008, the bank's commitment to keeping customers in their homes has led to nearly 615,000 mortgage modifications, including more than 160,000 trial modifications through HAMP and more than 450,000 completed modifications through non-government programs and individualized solutions. For more information, visit www.bankofamerica.com.
Published
Dec 29, 2009
FormFree Enters Deal To Offer Products to Lenders One Members

Mortgage Cooperative Hopes Automated Borrower Verification Tools Will Enhance Customer Experience

Industry News
Aug 03, 2021
AHP Servicing Names Charles Halko Jr. CFO

Brings 30-Years Of Experience to Chicago-Based Servicer

Industry News
Aug 03, 2021
Ready Capital Announces Deal To Acquire Red Stone

Real Estate Finance Company Expands In Multi-Family Affordable Housing Sector

Industry News
Aug 03, 2021
Anchor Loans Hires Andrew Jewett As SVP, Enterprise Sales

Formerly lead lending at Sundae Inc.

Industry News
Aug 02, 2021
Pretium Adds 3 Execs With Residential Credit Expertise

New Hires Will Serve As Managing Directors

Industry News
Aug 02, 2021
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021