DOW JONES NEWSWIRES
Bank of America Corp. (BAC) added about 12,000 customers to the ranks of borrowers completing mortgage modifications under the federal government’s Home Affordable Modification Program in the past month, the bank’s biggest increase to date.
The banking giant said that as of Thursday, 32,900 customers completed the HAMP process, up from 20,666 a month earlier.
“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,” said Jack Schackett, a loss-mitigation strategies executive at BofA.
HAMP is a government program designed to lower monthly mortgage payments for homeowners who can no longer afford to make those payments.
To qualify for a permanent loan modification, a borrower with a trial modification is required to make three consecutive monthly mortgage payments and complete the documentation. There has been concern that many applicants wouldn’t be able to meet the requirements because of the amount of paperwork and additional training and processing required by lenders.
By Nathan Becker
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