Bank of America has surpassed its previously stated target of helping at least 125,000 financially distressed homeowners begin trial modifications through the federal government’s Home Affordable Modification Program (HAMP) by November.
In addition to its active participation in HAMP, Bank of America was among the first lenders to offer refinancing under the Home Affordable Refinance Program (HARP). Bank of America said that, to date, it has provided HARP refinancing to approximately 95,000 homeowners, representing nearly 30% of the industry total.
Bank of America has initiated nearly one in five HAMP trial modifications industrywide since the company began participating in the program in April, 2009. Since beginning its HAMP outreach efforts, the bank’s homeownership retention division has contacted nearly 600,000 potentially eligible homeowners to ascertain their interest in HAMP and has extended more than 200,000 offers of trial modifications under the program.
Jack Schakett, credit loss mitigation strategies executive of Bank of America Home Loans, said: “Bank of America associates are working to keep as many customers in their homes as possible, and we have established clear momentum in providing trial modifications under HAMP. We are helping our customers complete trial modifications successfully, convert to permanently modified loans under the program and get back on the path to successful, sustainable homeownership.”
Schakett noted that Bank of America began achieving significant gains in trial modification starts in August. On that basis, the company expects its conversion of customers into permanent modifications under the program will begin showing substantial progress in November, which will be reflected in December program reporting.
