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BofA Quadruples Completed HAMP Modifications

More than 12,700 ""Bank of America"":https://www.bankofamerica.com/index.jsp customers now have a permanent loan modification under the Home Affordable Modification Program (HAMP), according to the Charlotte, North Carolina-based bank's monthly report to the ""Department of the Treasury."":http://www.treasury.gov/

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Up from 3,200 completed modifications reported in December, Bank of America quadrupled its number of permanent HAMP modifications in just 30 days. In addition, another 13,700 permanent modifications are pending. This means final modified loan terms have been approved, and documents have been sent for the customers' signatures, which will be the final step to a completed modification.

""In the past month, our concerted customer outreach initiative has driven a substantial increase in the rate of conversions from trial to permanent modifications, as we anticipated in our recent reports of HAMP progress,"" said Jack Schakett, credit loss mitigation strategies executive for Bank of America Home Loans. ""These results are attributable to the resources -- including expansion of our default management staffing to more than 15,000 -- and focus we have placed in support of this and other homeownership retention programs.""

The bank said it is continuing to take extraordinary measures to reach customers who face deadlines for providing necessary documentation for consideration of a permanent modification. As part of this initiative, the bank averages more than a dozen contacts per customer through mail, telephone calls, and door-to-door outreach aimed at encouraging and helping eligible homeowners meet their documentation requirements.

""Bank of America is a strong proponent of the home retention goals of the Making Home Affordable program, and we have placed HAMP at the center of our broad-based mortgage modification efforts,"" Schakett said.

""As DSNews reported"":http://dsnews.comarticles/bofa-signs-on-as-first-servicer-of-hamps-second-lien-program-2010-01-26, Bank of America recently became the first servicer to formally agree to participate in the HAMP second-lien modification program. Schakett said this further demonstrates the bank's commitment to putting as many financially struggling homeowners as possible into a more affordable and sustainable situation.

Since January 2008, Bank of America has helped 700,000 customers with loan modifications through its own programs and with trial and completed modifications under HAMP. The bank is also a participant in the Home Affordable Refinance Program, a prong of the Making Home Affordable initiative of which nearly 152,000 Bank of America customers have benefited from. In total, Bank of America said it helped more than 1.1 million customers refinance their home in 2009.

About Author: Brittany Dunn

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