Consumer Law

HAMP Modifications Down Again, BofA Worse than Others

By Alan White

Treasury reports that September HAMP activity continued the depressing trend: there were fewer than 30,000 new permanent mortgage modifications and 36,000 temporary mods canceled. 

Huge variations among banks and servicers continue as well.  Bank of America lags in pretty much every category of performance, although it can always tout higher numbers of everything, since BofA services more loans than any other company.  ProPublica put together this helpful graphic scorecard showing each mortgage servicer's rate of success and failure in converting temporary modifications.  My chart shows how badly BofA does even in helping homeowners who whose HAMP requests were canceled or rejected.

30,000 modifications a month is just not going to make a dent when there are still nearly 200,000 new foreclosures started each month.  Nor is there any reason Treasury should continue to tolerate servicers like BofA who fall so far short of even the weak average performance under HAMP contracts. 

Full post as published by CL&P Blog on October 29, 2010 (boomark / email).