Bank of America (NYSE:BAC) Adds 8,000 More to Modified Mortgage List

Bank of America (NYSE:BAC) has increased the number of customers it added to their list of those they will modify their mortgages with under the Home Affordable Modification Program (HAMP), according to its latest month.

“We are in a position to show strong results in completion of permanent HAMP modifications as we move into spring,” according to Jack Schakett, loss mitigation strategies executive for Bank of America Home Loans unit. “We have a strong pipeline of modifications in the trial payment period, under review for conversion to permanent status, and out for final signature.”

The latest monthly figures of the company show it now has permanent mortgage modifications numbering 20,666 for that month, an major increase from the 12,761 they made permanent in the prior month. There are even more permanent modifications in the pipeline, which means 22,303 are approved and are waiting for customers to sign the papers.

It has taken a lot of time for the entire HAMP program to get going because of the amount of training workers needed to implement the process, as the usual amount of paperwork to be completed is enormous.

Qualifications for the borrower also are in place to ensure they at least have the will to continue on in the home in make their payments, as they must go through a three-month trial modification where they pay their loans, while working on the final documents to prepare for the actual modification.

The purpose of HAMP is to help borrowers stay in their homes by offering a lower monthly mortgage payment once they are no longer able to make them. Much of that is triggered by re-sets of adjustable rate mortgages which increase in interest rates and of course monthly payments.

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