Skip to main content

Bank of America Completes 700,000 Mortgage Modifications Since January 2008

Oct 28, 2010

Bank of America has announced that it has completed 700,000 mortgage modifications since January 2008, with the completion of about 16,500 modifications in September. More than 12,700 homeowners were assisted through the bank’s proprietary programs last month, bringing the total since January 2008 to more than 614,000. In addition, nearly 3,700 modifications were completed in September through the government’s Home Affordable Modification Program (HAMP), and a total of more than 85,000 HAMP modifications have been completed since the program’s inception last year. In its monthly servicer performance reports, the U.S. Department of the Treasury lists the number of net permanent modifications, subtracting previously completed modifications if the mortgage has been paid off, servicing has been released to another servicer or the customer has fallen 90 days past due since entering into the completed modification agreement. For Bank of America, nearly 7,000 modifications have been subtracted from monthly reporting for one of these reasons as the loan modifications entered into late last year and in the first half of 2010 begin to age. About 4,700 of the reductions were reported in September and early October, more than offsetting the number of new HAMP modifications completed during the period. As a result, the monthly Treasury report is expected to show 78,905 net permanent modifications still in place for Bank of America customers as of the Oct. 8 reporting deadline, down slightly from 79,859 a month earlier. “HAMP and our other modification efforts have provided a homeownership lifeline to hundreds of thousands of our customers during the ongoing economic downturn,” said Rebecca Mairone, default servicing executive for Bank of America Home Loans. “For most of them, these modifications are providing a sustainable home retention solution. For others, they have provided a period of stability that is allowing them to sell their homes or find other financing and pay off the modified mortgage. Unfortunately, with the slow economic recovery and continued high rates of unemployment and underemployment, some customers are having difficulty sustaining even reduced payments, and we are and will be working with many of them toward a smooth and dignified transition to alternative housing arrangements in the coming months.” In addition, the number of loans completed in recent months is reflecting several months of decline in new trial modifications that began in April, when Bank of America implemented a change in the HAMP guidelines requiring full underwriting prior to approval of a trial plan. Previously, trial payment plans were based upon stated financial information, and full underwriting took place prior to approval of the permanent modification. For more information, visit www.bankofamerica.com.
About the author
Published
Oct 28, 2010
123 Newrez Employees Laid Off In Florida and Colorado

WARN Notices were filed the day after Computershare Mortgage Services, SLS acquisition closed.

May 07, 2024
Ishbia Predicts A Rate Cut By Election Day

CEO of United Wholesale Mortgage shares 'personal perspective' in new YouTube video

May 03, 2024
Yield Curve, Schmield Curve?

The yield curve is a harbinger, not the be-all, end-all for lenders.

May 02, 2024
UWM, UMortgage Under Attack For Alleged Shell Scheme

A report released on April 25 by the hedge-funded media company alleges UWM set up a shell company, UMortgage.

Apr 25, 2024
More Questions Than Answers At Housing Finance Climate Summit

Government officials, housing leaders, and climate scientists meet to address climate change's escalating impact on housing.

Apr 22, 2024
Maximum Acceleration, Originator Connect Network Sign Exclusive CE Agreement

Pact gives OCN guaranteed live CE at shows, creates nationwide opportunity for Maximum Acceleration

Apr 17, 2024