The Treasury Department today released a report showing loan servicers have a mixed record, mostly poor, of helping borrowers under the Obama administration’s foreclosure prevention plan. Bank of America landed on the low end of the scale, helping just 4% of eligible borrowers 60 days past due.
Barbara Desoer, president of Bank of America Home Loans, issued the following response to the report:
“Bank of America is committed to the success of the Making Home Affordable program and helping homeowners avoid foreclosure whenever a borrower has the ability to make a reasonable mortgage payment and the desire to remain in their home.
The Treasury Department’s initial Servicer Performance Report reflects Bank of America’s recent conversion positioning Making Home Affordable as the centerpiece of our modification efforts. Yet, already, Bank of America accounts for one in every four trial modification offers extended through the entire program – the leading indicator for homeowners that will ultimately enter the trial modification program and be eligible for final modifications.
Importantly, this report is not intended to capture each servicer’s progress outside of MHA in stemming the tide of foreclosures. In the first half of 2009, Bank of America completed 150,000 modifications through our own programs as we ramped up to make MHA operational. These 150,000 homeowners were at serious risk of foreclosure, but today remain in their homes with an affordable mortgage payment. These additional programs are essential to address the myriad of complex issues homeowners face.
Despite our aggressive efforts to find solutions for homeowners in default, we must improve our processes for reaching those in need. Additionally, we continue to work with Treasury to find solutions for at-risk homeowners who fall outside the eligibility requirements of the current program as well as the growing number of customers now unemployed.
Bank of America has not proceeded with foreclosure sales for customers with whom we have established contact that may be eligible for a modification under Making Home Affordable or our other modification programs.”
As the statement says, the Treasury report does not include modifications made outside the program. Critics have charged it is too complicated and having a “trial period” is a needless waste of time and money.
More from this blog…
- U.S. mortgage aid reaches fraction of eligible borrowers
- Subprime servicer says Obama foreclosure-rescue plan is costly
- Foreclosures dip. Second wave coming?
- Fannie Mae issues 44% more mortgage securities
- Investors ignored these foreclosure discounts
- Foreclosure pipeline expands, again
- Can you get a mortgage with social-welfare income?
- Title insurance requests jump 9%, firm reports
- These O.C. homes are about to be repo’d
Post from: Mortgage Insider
More state and national mortgage news and mortgage press releases:
- Loan mod recipients get clear description of new terms through Bank of America’s Clarity Commitment Bank of America Home Loans has begun providing its...
- Loan Servicing Platform from Fiserv meets new Making Home Affordable Loan Modification requirements Fiserv Inc., a provider of financial services technology solutions,...
- Administration, servicers commit to faster relief for struggling homeowners through loan mods Senior Obama Administration officials met with top executives from...
- Chase approves 138,000 trial modifications in the last three months Chase has announced that it has approved 138,000 trial...
- Wells Fargo reports nearly 500,000 customers provided with loan mods in 2009 Wells Fargo & Company said it continues to use...
Related posts brought to you by Yet Another Related Posts Plugin.
