Bank of America has systems in place to begin implementing the second lien modification program (2MP) with the release of final program policies and guidelines by federal regulatory agencies, which is expected soon.
2MP will require modifications that reduce the monthly payments on qualifying home equity loans and lines of credit under certain conditions, including completion of a HAMP modification on the first mortgage on the property.
Bank of America said that it would modify eligible second liens regardless of whether the first lien is serviced by Bank of America or another participating servicer.Reportedly, using non-government programs, Bank of America modified more than 57,000 second liens to assist financially strapped homeowners over the last two years.
Barbara Desoer, president of home loans at Bank of America, said: “For many homeowners facing severe financial difficulty, decreasing the payment on the first mortgage without a reduction in the payment on the second lien may not produce an affordable combined mortgage payment.”
“Signing this contract ahead of the release of the final program guidelines is a continued demonstration of Bank of America’s strong overall commitment to homeownership retention and to the Making Home Affordable program as the centerpiece of these efforts.
“2MP will become a valuable addition to Bank of America’s broad toolkit of potential solutions for customers facing financial difficulty and will increase our ability to help even more homeowners.”
