At the end of October, nearly 50,000 Bank of America customers remained in active trial modification status under the Home Affordable Modification Program (HAMP) – down from more than 62,000 in September and from a peak of more than 250,000 active trial plans in March, the bank reports.
The upcoming monthly Treasury Department report of HAMP progress is expected to show about 32,500 of Bank of America's active trial modifications are aged six months or longer, the company says, adding that 18,000 of these customers already have received permanent modification offers.
These offers are pending the customers' signatures, or have been signed and are in the process of being returned to normal servicing and reported to Treasury as permanent modifications, the bank says. Of the remaining aged trials, 4,500 have been reviewed and are pending cancellation, leaving 10,000 aged trials still under review for a decision.
‘At this time, we anticipate substantially completing decisions on the remaining "aged trials' by year's end,’ says Rebecca Mairone, default servicing executive for Bank of America Home Loans. ‘We have discussed our plans for meeting this goal with Treasury representatives and will ensure that customers are kept informed about their status as those decisions are made."
Bank of America reports that it completed nearly 25,000 mortgage modifications in October – up from about 16,500 in September.
Nearly 22,400 of the October modifications were proprietary solutions offered by the bank, compared to 12,300 a month earlier. Nearly 2,600 were converted from trial plans to permanent modifications through HAMP.
"We saw a gain in proprietary modifications in October, and a large number of those are alternative modifications for homeowners who we were unable to qualify for a permanent HAMP modification or are no longer active in a completed modification," says Mairone.
In its upcoming HAMP servicer performance report, the Treasury is also expected to report that 79,339 Bank of America customers remain in active HAMP permanent modifications.
SOURCE: Bank of America