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BofA Initiates Hardest Hit Fund Principal Reduction Offers in Arizona

""Bank of America"":http://www.bankofamerica.com is the first major mortgage servicer to leverage the federal government's Hardest Hit Fund (HHF) to begin pilot programs of principal reductions for Arizona customers who owe considerably more on their mortgages than their properties are worth.

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Through the Arizona pilot, BofA customers experiencing financial hardship may be eligible to have the amount owed on their mortgages reduced through matching contributions from the state and participating mortgage investors.

The bank began mailing letters to customers who may qualify for the assistance based on state program and

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investor guidelines. The offers are made in conjunction with the solicitation process for the federal government's Home Affordable Modification Program (HAMP).

""Bank of America remains committed to helping distressed borrowers remain in their homes through a variety of programs,"" said Terry Laughlin, the bank's EVP.

Laughlin continued, ""Since the Obama administration established the Hardest Hit Fund (HHF) initiative one year ago, Bank of America has worked closely with both the Department of Treasury and state housing agencies to design and implement the program to provide interim payment assistance to unemployed borrowers as well as funding for loan modification assistance to delinquent borrowers. We are excited this program is coming to fruition.""

BofA is working to begin similar pilot programs in Nevada and California, finalizing details with the Nevada Affordable Housing Assistance Authority and the California Housing Finance Agency.

According to Bank of America, it will continue expanding these programs on a state-by-state basis as agreements are reached with interested housing finance agencies in other HHF-grant states. HHF programs are targeted to low- and moderate-income homeowners, and eligibility depends on investor participation.

About Author: Heather Cernoch

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