Bank of America Corp (NYSE: BAC) Home Loans Unit President Barbara Doser testified before Congress last week and shared sobering details about the realities of some of its relationships with customers, including that “hundreds of thousands of customers” have not made a payment in more than a year.
Barbara Doser testified on the bank’s progress in making mortgage modifications and provided suggestions how Congress could improve its modification efforts. Doser stressed the need for options for those who can no longer afford their homes and explained BofA’s efforts in developing more help for unemployed and impoverished borrowers.
Desoer, who reports to Chief Executive Brian Moynihan, will testify before the House Financial Services Committee, which is looking at the effectiveness of the Home Affordable Modification Program, called HAMP.
According to Desor, Bank of America expects a “considerable number” of borrowers to lose their homes during the next couple of years because of unemployment and the large number of homes where borrowers owe more on the balance than the value of the home, commonly referred to being “under water.” It’s estimated that more than 11 million homeowners are under water on their mortgages.
Bank of America is facing several lawsuits claiming that it has not done its job in making modifications happen. Borrowers, lawmakers and regulators have all criticized large banks for losing paperwork, not communicating well and leaving customers with lengthy delays.
“We recognize the effect even one foreclosure has on the customer and community, and we will continue to help customers who want to stay in their homes and have the capacity to do so,” says Desoer’s testimony.
