The U.S. Department of Justice and the state attorneys general have agreed to the terms of a global settlement with the largest mortgage servicers, including Bank of America. This government agreement extends our ongoing commitment to help homeowners who are struggling to make their mortgage payments.
As part of ongoing efforts to help customers in need of mortgage assistance, Bank of America has committed through the National Mortgage Settlement to develop programs to provide expanded mortgage modification solutions. We also continue to help customers pursuing short sales and may offer additional assistance programs, such as deed in lieu of foreclosure and/or financial assistance to help those who are transitioning out of a property.
The National Mortgage Settlement also establishes certain servicing standards that must be met by the participating servicers. These include providing a single point of contact for customers under review for a modification or other assistance, preventing “dual-tracking” of foreclosure processes while a fully documented file is under review, and other processes, practices and requirements associated with loan modifications, foreclosure and bankruptcy. Bank of America is also on track to implement all applicable servicing standards within the timeframes required by the settlement.
We believe these are important programs for homeowners in need of assistance and we have – and will continue – to work with urgency to help our customers avoid foreclosure.
Bank of America believes that as of March 31, 2013, it completed sufficient consumer relief to exceed its settlement obligations, subject to review, crediting and certification by the monitor. While no longer reflected in the crediting reports for the settlement, Bank of America continues to deliver important consumer relief programs – including first-lien principal forgiveness modifications – to eligible customers in need of assistance.
Bank of America’s progress across the NMS programs through March 31, 2013 includes:
- First-Lien Principal Forgiveness – More than 46,000 customers had been approved for offers of first-lien modifications or received forgiveness of previous principal forbearance, providing more than $7 billion in total principal reduction.
- Home Equity Relief – More than 144,000 customers had received extinguishment or modification of a home equity loan or line of credit, totaling more than $9.8 billion in reduced principal.
- Other Consumer Relief Programs - Nearly 130,000 customers had received $13 billion in benefits from other NMS relief programs. This included nearly 99,000 qualifying short sales providing a total of $11.8 billion in relief from unpaid principal balances on the loans completed during 2012.
- Interest Rate Reduction – Of the nearly 46,500 homeowners offered an interest rate reduction, more than 20,000 modifications had been completed, all at no cost to the homeowners.
- The figures provided here represent the bank’s reporting of the actual amount of assistance offered to customers. The determination of credits earned toward the settlement obligations will be based on the types of relief and the amount of relief completed from those offers and will be made by the federal monitor at a future date.
- The majority of credits will be earned through modifications that reduce principal, which generally are credited at a higher percentage of dollar value than relief from other programs. Also reflected in the first quarter report, Bank of America has restated some reporting for the fourth quarter, removing certain loans to more accurately reflect expected crediting under the monitor’s review.
- May 21, 2013 – Bank of America Assisted 366,000 Customers With National Mortgage Settlement Programs Through March 31
- Feb. 21, 2013 – Meaningful Relief Provided to More Than 370,000 Bank of America Customers in 2012 Through National Mortgage Settlement Programs
- Nov. 14, 2012 – $15.8 Billion in Mortgage Relief to 164,000 Bank of America Customers Delivered Through National Mortgage Settlement
- Oct. 17, 2012 – Bank of America Provides $4.75 Billion in First Lien Principal Reductions in First Five Months Under National Mortgage Settlement
- Sept. 28, 2012 – Bank of America Notifies Eligible Mortgage Customers of Second Lien Mortgage Debt Extinguishment
- May 8, 2012 – Bank of America Extends Modification Offers Under Global Servicer Settlement
- Feb. 9, 2012 – Bank of America Announces Agreements in Principle With Federal and State Authorities on Mortgage Matters
- Nov. 16, 2012 – Eric Telljohann, the bank’s Credit Loss Mitigation Strategy executive, discusses the bank’s positive progress, multiple programs and how it is helping mortgage customers through the National Mortgage Settlement. Listen to his interview with Martin Andelman of Mandelman Matters.
- Oct. 17, 2012 – Martin Andelman of Mandelman Matters spoke with Home Retention and Loss Mitigation Executive Dave Steckel about how Bank of America is implementing and meeting the requirements of the National Mortgage Settlement and its progress to date on first lien principal reductions. Listen to the interview.
For More Information
Home Loan customers in need of financial assistance can also join us at an upcoming outreach event or visit a local customer assistance center. Housing counselors can contact the Advocacy Department at firstname.lastname@example.org.
If you are a member of the media seeking information for a news story or inquiring about local or state data, contact a Bank of America Media Relations team member at email@example.com or call 800.796.8448.