Bailout

BofA?s dismal mortgage-modification rate

By Felix Salmon

Yet more proof, if proof be needed, of Bank of America’s dysfunctionality comes in the latest HAMP report from Treasury. BofA has 1,018,192 loans eligible for modification — more than twice as many as anybody else; JP Morgan is in second place with 448,815. Of those million-plus mortgages, BofA has managed to turn the grand total of 98 into permanent modifications — a conversion rate of 0.0096%.

Elsewhere, the conversion rate is much higher: Ocwen Financial, for instance, has 4,252 permanent conversions out of 66,351 eligible loans, for a rate of 6.4%. Even JP Morgan Chase has managed 4,302 permanent conversions, for a rate of just under 1%.

It takes time to move clients through the trial-modification process and into something permanent, of course. But it also takes competence. And that seems to be a commodity in short supply at BofA.

Full post as published by Macroprudential on December 11, 2009 (boomark / email).