Bank of America Warns Modification Numbers Won’t Be Accurate

June 15, 2010 No Comments »


Bank of America announced today that it completed 70,000 permanent loan modifications under the Making Home Affordable Program, but warned an upcoming Treasury report may reveal different numbers.

“Bank of America continued to make significant progress in converting HAMP trial modifications to completed modifications last month,” said Rebecca Mairone, default servicing executive for Bank of America Home Loans, in a press release.

Last month, the bank converted more than 16,000 homeowners from trial to permanent contracts under the program, a task that has proven to be quite tricky for large banks and mortgage lenders.

“However, we do not expect these modifications will be fully reflected in the Treasury department’s monthly progress report because of issues that we experienced in uploading some files to the computerized reporting system.”

The Treasury is expected to report that Bank of America completed a total of 63,000 permanent loan modifications under HAMP when it releases the numbers for May.

Of course, BofA stressed the computer glitch had no impact on the homeowners and noted that their loan mods were already “in effect,” resulting in long-term affordable mortgage payments.

Since January 2008, Bank of America has “accomplished” more than 560,000 home loan modifications outside of HAMP, including roughly 71,000 non-HAMP modifications this year.

In case you forgot, Bank of America came under fire for completing just 98 permanent loan modifications under the program when it first got underway.

They’ve subsequently improved their numbers, but still lag their peers considerably, despite being the largest loan servicer in the country.

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