BofA: Settlement programs provide 370,000 borrowers with relief
Banking giant Bank of America (BAC) says 370,000 BofA borrowers received some type of mortgage relief through programs tied to the National Mortgage Settlement last year.
By the end of 2012, close to 47,000 BofA customers had received first-lien loan modifications or forgiveness of previous principal forbearance, BofA said. Those two strategies alone resulted in $7 billion in total principal reduction relief, according to a statement from the company.
BofA claims it also provided 144,000 customers with a complete extinguishment or modification to a home equity loan or line of credit, with relief totaling $9.8 billion in reduced principal.
Interest rate reductions were offered to 40,000 homeowners, who were current on their payments but underwater.
Approximately 7,500 reductions were completed.
BofA added that 142,000 customers received $13 billion in benefits from other programs tied to the national mortgage settlement, including nearly 99,000 qualifying short sales that provided a total of $11.8 billion in relief from unpaid principal balances on loans.
About 4,200 borrowers have received complete forgiveness valued at $263 million in principal forbearance pre-dating the March 1 start of the settlement.
Second-lien BofA holders received $9.7 billion in assistance through either home equity debt elimination or the complete termination of the lien.
BofA says 141,000 borrowers obtained second-lien extinguishment offers, valued on average at $68,000 in relief.
Another 2,200 loans were modified through the Making Home Affordable second-lien program, cutting balances by $158 million.
Principal reductions led to average monthly payments of $234 each per month, while 23,500 BofA borrowers went through short sales and received $162 million in relocation benefits.
The bank noted that $11.8 billion in deficiencies were waived on short sales completed between March 1 and Dec. 31.