Bank of America has realized significant gains modifying mortgages through the government's Home Affordable Modification Program (HAMP).
At the reporting deadline for the Treasury Department's monthly Home Affordable Modification Program (HAMP) report, expected to be issued this week, Bank of America had quadrupled the number of completed modifications for its customers since the previous month's report, the company says.
More than 12,700 Bank of America customers now have a permanent HAMP modification – up from 3,183 a month earlier. Another 13,700 permanent modifications are pending, meaning final modified loan terms have been approved and documents have been sent for the customers' signatures, which will be their 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,’ says 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.’
Bank of America says it averages more than a dozen contacts – including mail, telephone and door-to-door outreach – per customer aimed at helping borrowers meet documentation requirements and avoid falling out of the program.
‘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,’ adds Schakett.
Earlier this year, Bank of America became the first servicer to formally agree to participate in the HAMP second-lien program.
SOURCE: Bank of America