Bank Of America (NYSE: BAC) Permanently Modified More Than 12,000 Loans Last Month

Bank of America (NYSE: BAC) announced Monday that it has permanently modified 33,000 loans through the Home Affordable Modification Program (HAMP), an increase of 12,200 since its report a month ago.  The monthly increase marks the largest since the bank joined the loan modification program.

“We anticipated the momentum of completion of HAMP modifications would build as we entered spring, and we’re seeing that,” said Jack Schakett, loss mitigation strategies executive for Bank of America. “As more homeowners have completed their required trial payment period and provided the information necessary for underwriting, an increasing number of Bank of America customers are receiving long-term assistance through the government initiative and the efforts of our associates.”

According to the bank’s report to the Treasury Department, as of April 8, 32,900 borrowers have completed the entire modification process for HAMP and have had their loans adjusted permanently.

Additionally, Bank of America began providing modification offers for second mortgages on April 1, the first major bank to do so.  Modification efforts on second loans are being done through the 2MP initiative that was recently added to the HAMP.

Bank of America is also in the process of implementing the new Home Affordable Foreclosure Prevention program that aims to streamline short sales so borrowers that do not qualify for HAMP modifications have an opportunity to avoid foreclosure.

Since January 2008, Bank of America has completed an additional 535,000 loan modifications outside of HAMP through its own programs.