BoA Gains Momentum In Completing HAMP Mods

Bank of America completed 23,500 permanent HAMP modifications in April, almost double what it processed the previous month. The nation's largest servicer of residential loans is becoming more proficient in the use of the Home Affordable Modification Program, which requires servicers to reduce a borrowers' mortgage debt to 31% of income, and put the applicant through a three-month payment trial before qualifying him for a permanent modification. "We continue to evaluate homeowners' eligibility and activate trial modifications while focusing on completing as many permanent modifications as possible," said Jack Schakett, B of A's credit and loss mitigation executive. B of A had completed 32,900 HAMP modifications as of March 30, overtaking JPMorgan Chase (31,460 completed mods) as the top HAMP servicer. "We continue to demonstrate momentum executing HAMP," B of A Home Loans president Barbara Desoer said recently. She noted that another 38,000 permanent modifications would be completed once the customers signed the contract. Since the Obama Administration launched HAMP in the spring of 2009, B of A has completed 56,400 modifications.