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Bank of America Mortgage Modification Through HAMP, Blows!

New data out from the Treasury Department on the Making Home Affordable Program shows the depressing conversion rate of people seeking to get their mortgage modified and stay in their homes.

What is so amazing in the data is the wide difference in the conversion rates per lender.

Here is a list of lenders and their rates of converting mortgages.

  • Wachovia – 86%
  • HomeEq – 83%
  • Ocwen – 73%
  • GMAC – 71%
  • American Home – 67%
  • U.S. Bank – 67%
  • Other SPA Servicers – 49%
  • Nationstar – 52%
  • Other GSE Servicers – 49%
  • OneWest – 48%
  • SPS – 47%
  • Aurora – 41%
  • Saxon – 39%
  • CitiMortgage – 34%
  • JPMorgan Chase – 33%
  • Wells Fargo – 30%
  • Bank of America – 27%
  • Litton – 27%
  • PNC Mortgage – 24%

You would expect Bank of America to be a leader in attempting to assist their customers. But through September 2010, Bank of America had the largest number of trial plans started, 411,740, but a horrible completion rate.

This is supported by many of the comments I’ve heard from consumers who have frankly struggled with Bank of America to get anything to move forward or make sense. Of the most curiosity are those people that are in loan modification programs with Bank of America and still getting foreclosed on at the same time.

Bank of America has also let a large number of trial programs continue for more than six months and then when they don’t give the final approval they are going back and back billing consumers for the difference between their regular mortgage payment and trial modification payment.

Even when you look at a number of metrics about how Bank of America is doing answering calls, abandoned calls, and time to resolve escalations, they are the worst.


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Footnote: Non-GSE Participants in HAMP
AgFirstFarm Credit Bank
Allstate Mortgage Loans & Investments, Inc.
American Eagle Federal Credit Union
American Finance House LARIBA
American Home Mortgage Servicing, Inc
AMS Servicing, LLC
Aurora Loan Services, LLC
Bank of America, N.A.1
Bank United
Bay Federal Credit Union
Bay Gulf Credit Union
BayviewLoan Servicing, LLC
Bramble Savings Bank
Carrington Mortgage Services, LLC
CCO Mortgage
Central Florida Educators Federal Credit Union
Central Jersey Federal Credit Union
CentrueBank
CitiMortgage, Inc.
Citizens 1st National Bank
Citizens Community Bank
Citizens First Wholesale Mortgage Company
Community Bank & Trust Company
Community Credit Union of Florida
CUC Mortgage Corporation
DuPageCredit Union
Eaton National Bank & Trust Co
Farmers State Bank
Fay Servicing, LLC
Fidelity Homestead Savings Bank
First Bank
First Financial Bank, N.A.
First Keystone Bank
First National Bank of Grant Park
First Safety Bank
Franklin Credit Management Corporation
Franklin Savings
Fresno County Federal Credit Union
GFA Federal Credit Union
Glass City Federal Credit Union
GMAC Mortgage, LLC
Golden Plains Credit Union
Grafton Suburban Credit Union
Great Lakes Credit Union
Greater Nevada Mortgage Services
Green Tree Servicing LLC
Hartford Savings Bank
Hillsdale County National Bank
HomEqServicing
HomeStarBank & Financial Services
Horicon Bank
Horizon Bank, NA
Iberiabank
IBM Southeast Employees’ Federal Credit Union
IC Federal Credit Union
Idaho Housing and Finance Association
iServeResidential Lending LLC
iServeServicing Inc.
J.P.MorganChase Bank, NA2
Lake City Bank
Lake National Bank
Liberty Bank and Trust Co.
Litton Loan Servicing
Los Alamos National Bank
Magna Bank
MainstreetCredit Union
MarixServicing, LLC
Metropolitan National Bank
Midland Mortgage Company
Midwest Bank & Trust Co.
Midwest Community Bank
Mission Federal Credit Union
MorEquity, Inc.
Mortgage Center, LLC
Mortgage Clearing Corporation
National City Bank
NationstarMortgage LLC
Navy Federal Credit Union
Oakland Municipal Credit Union
OcwenFinancial Corporation, Inc.
OneWest Bank
ORNL Federal Credit Union
Park View Federal Savings Bank
Pathfinder Bank
PennyMacLoan Services, LLC
PNC Bank, National Association
Purdue Employees Federal Credit Union
QLending, Inc.
Quantum Servicing Corporation
Residential Credit Solutions
RG Mortgage Corporation
Roebling Bank
RoundPointMortgage Servicing Corporation
Saxon Mortgage Services, Inc.
Schools Financial Credit Union
SEFCU
Select Portfolio Servicing
ServisOne Inc., dbaBSI Financial Services, Inc.
ShoreBank
Silver State Schools Credit Union
Specialized Loan Servicing, LLC
Spirit of Alaska Federal Credit Union
Stanford Federal Credit Union
Sterling Savings Bank
Suburban Mortgage Company of New Mexico
Technology Credit Union
Tempe Schools Credit Union
The Golden 1 Credit Union
U.S. Bank National Association
United Bank
United Bank Mortgage Corporation
University First Federal Credit Union
VantiumCapital, Inc.
Verity Credit Union
VistFinancial Corp.
WealthbridgeMortgage Corp.
Wells Fargo Bank, NA3
WescomCentral Credit Union
Yadkin Valley Bank

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

6 Comments

  • Bank of America by far has to be the worst Bank to deal with regarding the HAMP program. In November 2009, I submitted my request for a modification to my mortgage. My reasons were simple, I had lost a tremendous amount of income by losing my job and my wife was stricken with cancer. After looking at the 5 requirements for the HAMP program, I was by far eligible for the program. I was granted a trial modification in February 2010, and made my payments on time for the next ten months. Yes thats right, ten months. I sent the same paperwork at least five times to B of A during this period. They stated they had not received it, or I had filled it out wrong. About a week ago, after waiting and pleading with them for the modification, I received a denial with very little explanation that I could understand. Today, I received a certified letter from them, entitled “notice to accelerate” stating that if I did not pay the back balance (difference between the modification amount and the original amount) that they would start foreclosure proceedings. In addition to that they want the full payment for December, which in total is about 17,000. I have no choice but to take a 401K deduction to keep my home. I had never been late with B of A, before applying for the modification. I cannot tell you how heartsick I am. B of A, is horrible. I intend on curing the default and then pursuing legal steps against B of A. If anyone knows of any law firms representing this type of problem in Connecticut, please supply a post to this column. All I can say, is I am sick and tired of B of A, asking for this, that, and the other thing, just to deny me. The CEO and board of directors of that Bank need to be terminated. The US treasury needs to investigate them, and utilize any power that the can to squeeze them into assisting people who need help. As far as Presidents Obama grand plans to save struggling home owners in this program, his administration has failed miserably. …

  • Bank of America by far has to be the worst Bank to deal with regarding the HAMP program. In November 2009, I submitted my request for a modification to my mortgage. My reasons were simple, I had lost a tremendous amount of income by losing my job and my wife was stricken with cancer. After looking at the 5 requirements for the HAMP program, I was by far eligible for the program. I was granted a trial modification in February 2010, and made my payments on time for the next ten months. Yes thats right, ten months. I sent the same paperwork at least five times to B of A during this period. They stated they had not received it, or I had filled it out wrong. About a week ago, after waiting and pleading with them for the modification, I received a denial with very little explanation that I could understand. Today, I received a certified letter from them, entitled “notice to accelerate” stating that if I did not pay the back balance (difference between the modification amount and the original amount) that they would start foreclosure proceedings. In addition to that they want the full payment for December, which in total is about 17,000. I have no choice but to take a 401K deduction to keep my home. I had never been late with B of A, before applying for the modification. I cannot tell you how heartsick I am. B of A, is horrible. I intend on curing the default and then pursuing legal steps against B of A. If anyone knows of any law firms representing this type of problem in Connecticut, please supply a post to this column. All I can say, is I am sick and tired of B of A, asking for this, that, and the other thing, just to deny me. The CEO and board of directors of that Bank need to be terminated. The US treasury needs to investigate them, and utilize any power that the can to squeeze them into assisting people who need help. As far as Presidents Obama grand plans to save struggling home owners in this program, his administration has failed miserably. …

  • My brother went into a 10 month trial modification with BOA. After they stroked him for 10 months and allowed him to make the lower, modified payment, they informed him that his modification was NOT approved. Better yet, they demanded the difference (about 13K) in less than 30 days or they were going to start foreclosure proceedings.
    This bank is staffed by greed, incompetence and a maze of confusion. Nobody knows what they are doing and the entire mortgage department lacks responsible leadership. Who knows, they probably took the kickback from the HAMP and now want more money.
    If you are thinking of doing anything with BOA, do yourself a favor and go elsewhere. BOA is basically licensed to steal. AVOID AT ALL COSTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • My brother went into a 10 month trial modification with BOA. After they stroked him for 10 months and allowed him to make the lower, modified payment, they informed him that his modification was NOT approved. Better yet, they demanded the difference (about 13K) in less than 30 days or they were going to start foreclosure proceedings.
    This bank is staffed by greed, incompetence and a maze of confusion. Nobody knows what they are doing and the entire mortgage department lacks responsible leadership. Who knows, they probably took the kickback from the HAMP and now want more money.
    If you are thinking of doing anything with BOA, do yourself a favor and go elsewhere. BOA is basically licensed to steal. AVOID AT ALL COSTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Amen! After jumping through hoops for 5 months providing proof of income, proof of association dues payments, and other documents to Wachovia Mortgage underwriter, my application for HAMP loan modification was rejected. We did not qualify because of “too much income” based on the underwriter’s use of a 125% multiplier with our Social Security checks. this indicated we made 125% more from SS tahn actually received!!

  • Amen! After jumping through hoops for 5 months providing proof of income, proof of association dues payments, and other documents to Wachovia Mortgage underwriter, my application for HAMP loan modification was rejected. We did not qualify because of “too much income” based on the underwriter’s use of a 125% multiplier with our Social Security checks. this indicated we made 125% more from SS tahn actually received!!

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