BoA Reports Rising Loan Modifications
Bank of America Corp., which has been under government pressure to modify more underwater mortgages, has apparently responded aggressively.
Bank of America reports that as of the end of February, it had modified 20,666 of its customers’ mortgages permanently under the Home Affordable Modification Program, up from 12,761 at the end of January.
The company said another 22,303 are pending, waiting only for customer signatures.
“We are in a position to show strong results in completion of permanent HAMP modifications as we move into spring,” says Jack Schakett, loss mitigation strategies executive the bank.
Source: The Wall Street Journal, Jay Miller (03/12/2010)
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Survey Shows Frustration With HAMP
Real estate practitioners mostly gave the Obama administration’s Home Affordable Modification Program (HAMP) a thumbs-down, according to a report from Market Pulse Survey for Homes & Land.
Only 10 percent of the respondents — 51 percent of whom had been in the business for at least 10 years — believed the administration’s program had done any good. Sixty-five percent said they didn’t think the program was working; and the remaining 25 percent weren’t sure.
“Clearly respondents to our survey don’t believe this program is helping to reduce foreclosures,” says Eric Adair, business development analyst for Homes & Land.
Source: Inman News (03/03/2010)
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Foreclosure Prevention Has Aided 116,000
The federal foreclosure prevention program has helped about 12 percent of borrowers who applied for help since the plans were announced a year ago, the Treasury Department says.
About 1 million borrowers initiated the application process, and as of January, about 116,000 home owners–12 percent–had their loans modified. But administration officials say another 76,000 applications have been approved and are awaiting signatures.
Another 830,500 home owners are currently in a trial modification review period during which banks make sure payments are feasible for the borrower and ensure the qualifications of the assistance program are met.
For those who qualify, the Home Affordable Modification Program brings monthly loan payments down to 31 percent of home owners’ pre-tax income.
Nearly 60,500 people have been denied permanent modifications.
Source: CNNMoney, Tami Luhby (02/17/2010) and USA TODAY, Stephanie Armour (02/17/2010)
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