Bank of America Corp (NYSE: BAC) announced on Tuesday that it had completed 79,859 mortgage modifications through the government’s Home Affordable Modification Program, an increase from the 76,300 that it had announced last month, but slower growth than the company had seen earlier in the year.
The company said that the slowing growth rate is the result of loans that have converted to permanent modifications as well as loans that did not qualify for HAMP modifications, as well as a slow influx of homeowners entering the trial period now that the bank is now requiring full documentation and underwriting before making modification offers.
Bank of America Home Loans default servicing executive Rebecca Mairone said, “We continue to help thousands of homeowners through the HAMP and the use of other programs when customers are not eligible for a government-supported modification.”
The Home Affordable Modification Program (HAMP) is a government program aimed at lowering the monthly payments for home owners that can no longer afford to make their payments, but the program has fallen short of the goals set forth by the Obama administration. The program hoped to help 3 million homeowners, but half of the 1.3 million borrowers that signed-up in temporary loan modifications did not qualify for the program.
Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Banking, Global Markets, Global Wealth & Investment Management (GWIM), with the remaining operations recorded in All Other. On January 1, 2009, the Company completed the acquisition of Merrill Lynch.
Shares of Bank of America Corp (NYSE: BAC) traded down 0.66% during mid-day trading on Monday.
