BofA Reaches 56,400 Permanent HAMP Mods
[Update 1: Clarifies timeframe, total amount of mortgage modifications] Bank of America (BAC) pushed its total number of permanent modification under the Home Affordable Modification Program (HAMP) to 56,400 in April, up from 32,900 in March, for a total of more than 600,000 modifications through all available programs since January 2008. The Treasury Department launched HAMP in 2009 to provide incentives to servicers for the modification of loans on the verge of foreclosure. When the Treasury first reported permanent modification in November 2009, BofA reported 98 permanent modifications. A modification reaches permanent status through HAMP after the borrower completes the three-month trial period. A spokesperson for the Treasury said it would release the April numbers for the entire program next week. “We were able to convert close to 24,000 Bank of America customers from trial to permanent modifications in the past month, completing the process for more homeowners than in any previous month,” said Jack Schakett, credit loss mitigation strategies executive for Bank of America Home Loans. Schakett is seeing a decrease in the number of active trial modifications. While this comes from an increased conversion rate into permanent status, it is also the result of recent requirements for borrowers to submit all documentation before entering a trial period. BofA will begin principal write-downs of the highest-risk loans under HAMP in the coming months. Write to Jon Prior.