Bank of America Boosts Loan Modification Services

Bank of America Boosts Loan Modification Services

www.shortsaleandloanmod.info Sacramento Sale Agent and Default Advocate Mike Rigley discussesBank of Americas latest offer to slash mortgage balances by 0000 or more Bank of America will significantly slash mortgage balances for as many as 200000 borrowers. As part of the billion settlement reached between the five major mortgage servicers, the federal government and the attorneys general of 49 states and District of Columbia last month, Bank of America customers who qualify could see their mortgages reduced by an average of 0000 or more, according to bank spokesman Rick Simon. Those principal reductions are much deeper than the ones originally announced as part of the robo-signing settlement deal. When the settlement was first announced, the average principal reduction was expected to reduce mortgage balances by an average of about 000. Among the five biggest lenders, the reductions are expected to help roughly 1 mil lion homeowners who owe more on their homes than they are worth. The other four banks, JPMorgan Chase Citigroup, Wells Fargo and Ally Financial, are expected to reduce qualified borrowers' principal to between 115% and 125% of the value of their homes. Bank of America, meanwhile, is aiming to reduce the amount owed on a home to 100% match the current market value. Bank of America's deal only applies to the mortgages it owns and some that it services for private investors. Loans backed by government-controlled agencies like Fannie and Freddie or ...

Bank of America Settlement Sacramento Short Sale Agent and Default Advocate Mike Rigley

Bank of America Corp has reassigned about 2,500 of its mortgage origination personnel as loan modification officers. The action is part of the bank's commitment to provide better and more effective service to numerous distressed mortgage borrowers who are seeking assistance to avoid possible foreclosure.

The lender is apparently attempting to address persistent complaints from numerous borrowers who are currently trapped within an ongoing foreclosure crisis. Most of such borrowers complain that they are constantly referred to one bank employee to another when they try to find out and take ways to prevent foreclosure. Their disappointment further intensifies when they are always asked to explain their case over and over again every time they converse with a new bank officer.

The bank emerged to be the biggest home loans services in 2008 after it acquired Countrywide Financial Corp, then the top mortgage lender.

Bank of America came under fire in the past weeks after the Senate Banking Committee conducted a series of hearings into allegedly anomalous mortgage services particularly those involved in collecting payments, business billing, and handling of delinquencies on home loans.

During one of the hearings, Barbara Desoer, the mortgage chief of Bank of America, revealed that the company is set to institute a ‘case officer' system. The new system would spare customers from explaining their situations anew to different bank employees every time they call or drop by branches. Obviously, the system would assign one case officer to handle an account all throughout the process.

For their part, rivals like JP Morgan Chase & Co and Wells Fargo & Co have also announced their respective plans to assign individual case officers or managers to each troubled borrower. Market observers agree that such efforts are important and would be in the right direction towards achieving effective solutions to current foreclosure problems.

Since its acquisition of Countryside Financial, Bank of America has been actively trying to put itself up as an industry innovator and leader in terms of loan modifications. The company has assumed numerous troubled loans owned by delinquent customers of the acquired lender.

In 2008, Bank of America agreed to settle probes by various state attorneys general regarding mortgage practices. The settlement deal was aimed at reducing national borrower payments by $ 8.7 billion. Last March, the lender said it would further lower principal on several tricky home loans by about billions of dollars more.
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