Bank of America: Top Lender’s Foreclosure-Help Rate Climbing

Bank of AmericaBank of America, the nation’s top mortgage lender, is helping more near-foreclosure homeowners get on the government’s mortgage relief program, but it still retains the smallest placement rate of the big lenders – assisting about 19 percent of those eligible for modifications, according to U.S. Treasury figures.
Nonetheless, BofA topped the list of servicers ranked by the number of modifications underway – 203,470 – through December, ahead of JPMorgan Chase, Wells Fargo, CitiMortgage and Saxon Mortgage Services, the Treasury reported.
Bank of America’s percentage of eligible homeowners, those 60 days or more delinquent, who have been placed in modifications climbed to 19 percent in December’s report, compared to 15 percent the previous month.
As the top mortgage lender, BofA was under pressure to increase its rate of placements. Although an improvement, its rate is below the overall rate of 25 percent for the Home Affordable Modification Program, HAMP. And it is far from the servicers with the top placement rates:  CitiMortgage (47 percent); Saxon Mortgage Services (46 percent); GMAC Mortgage (44 percent); and JPMorgan Chase (36 percent).
In a statement released this week, Bank of America praised the government’s easing of deadlines for homeowners to provide documentation and other policy changes meant to streamline the tedious process. The lender said these actions have helped it keep more borrowers on modification trials and convert more to permanent status.
“As a result of the extensions, none of the Bank of America customers who successfully completed a trial payment plan has been eliminated from the program for failing to meet a government deadline for documents,” said Jack Schakett, credit loss mitigation strategies executive for Bank of America Home Loans. “Mortgage servicers have been able to significantly increase the number of modifications moving toward completion, and we expect the rate of conversions to continue rising.”
BofA stressed that it became the first mortgage servicer to surpass 200,000 customers entering HAMP trial modifications. The bank said it started more than 34,000 new trial modifications in December alone.
“We will continue our extraordinary efforts begun over the past two months — through phone, mail and even door-to-door outreach — to encourage and help the next wave of customers proceeding through the trial payment period meet the requirements for a final HAMP modification,” Schakett said.
For the Treasury’s full summary on HAMP, click here.

2 thoughts on “Bank of America: Top Lender’s Foreclosure-Help Rate Climbing

  • January 18, 2010 at 11:28 am

    Lenders have a big responsibility in this process.. for sure the foreclosure rate climbs and doesn’t help the real estate market and owners.

Leave a Reply

Your email address will not be published. Required fields are marked *