Bank of America Increases Permanent HAMP Modifications 14% in June
Bank of America (BAC) pushed its total of permanent mortgage modifications through the Home Affordable Modification Program (HAMP) to 72,000 in June since the program launched in March 2009. It’s a 14% increase from the 63,000 total in the previous month. Through the first half of 2010, BofA conducted 160,000 modifications through both HAMP and its own programs. The bank has modified 88,000 mortgages through those proprietary programs. Since January 2008, BofA modified 650,000 home loans. But Rebecca Mairone, default servicing executive at BofA, said the HAMP totals slowed in June compared to previous months. And it has, especially compared to the March to April growth of 74% more HAMP modifications. In April, BofA pushed its total number of workouts under the program to 56,400. But BofA had a strong month of growth through its own modification programs, Mairone said. “This included solid performance in providing alternative solutions through our second look program to homeowners who did not qualify for a permanent HAMP modification," Mairone said. BofA completed 17,000 non-HAMP modifications in June, compared to 9,000 permanent workouts conducted through the government program in the same month. Mairone said that in the middle of April, BofA implemented a revised policy to the program that requires full documentation and underwriting of new trial plans. “During this transition period, we anticipate a slower rate of growth in the number of completed HAMP modifications,” Mairone said. BofA reported $35.7bn in nonperforming loans, leases and foreclosed properties in Q210, which is 15% above levels measured in the same quarter of last year. In that quarter, the bank reported a $3.1bn net income for Q210, holding steady from the $3.1bn earned in Q110 and $3.2bn earned a year ago. Write to Jon Prior.