Bank of America (NYSE:BAC) Says April Best Month for Permanent Mortgage Modifications

The original HAMP mortgage modification program was a disaster, as the required paperwork demanded by the government completely hindered the purpose of HAMP. After changes though, Bank of America (NYSE:BAC) says things are improving in that area, and April was their most successful month in helping convert the temporary mortgage modifications into permanent ones.

Jack Schakett, credit loss mitigation strategies executive for Bank of America Home Loans, said this, “We were able to convert close to 24,000 Bank of America customers from trial to permanent modifications in the past month, completing the process for more homeowners than in any previous month.”

Under HAMP, Bank of America said they’ve now converted about 56,400 mortgages into permanent ones overall. The giant bank added they’ve worked on 600,000 mortgage modification since January 2008.

Near the end of March, changes were made by the administration which allowed the process to be much easier to participate in, which seems to have helped the growing success of the modifications being made permanent.

Schakett added, “We continue to evaluate homeowners’ eligibility and activate trial modifications while focusing on completing as many permanent modifications as possible for those who have successfully completed their trial payment period. At the same time, however, we are beginning to see a decrease in the number of active trial modifications, which we have anticipated.”

Even though thousands of customers of Bank of America don’t qualify for the HAMP program, they said they’re contacting many of them to try to work on other ways to help keep them in their homes.