Bank of America - no modified mortgages yet

[druidp]

www.npr.org/blogs/thetwo-way/2012/08/29/160255261/bank-of-america-hasnt-modified-any-mortgages-as-it-had-agreed-to?ft=1&f=1001&sc=tw&utm_source=twitterfeed&utm_medium=twitter

Last February, five major banks came to an agreement with the United States government that would provide $26 billion in mortgage relief aid to homeowners.

Today, the program's administrator issued its first report and it found that Bank of America, which was responsible for the biggest portion of the agreement, hasn't modified a single first-mortgage.

The Los Angeles Times reports:

"The report showed that Bank of America Corp. faltered in one key area of the settlement, completing no modifications of first mortgages from March 1 to June 30, the period covered in the first status report released by the Office of Mortgage Settlement Oversight.

"The other four banks covered by the settlement — JPMorgan Chase & Co., Wells Fargo & Co.,Citigroup Inc. and Ally Financial Inc. — reported that they had completed 7,093 modifications of first-lien mortgages worth a total of $749 million.JPMorgan Chase completed the most such modifications with $367 million.

"'More hard work remains as the banks work to meet their obligations,' said Joseph A. Smith, the monitor of the settlement."

The Wall Street Journal reports that overall, however, the five banks "wiped out nearly $1.3 billion in mortgage principal through loan modifications."

[NitaX]

This is not surprising to me at.all.

[bqbride]

Well, I am just shocked. Shocked, I tell you!

[llama]

How is it possible that BofA can be so evil that they outstrip even the most evil of their evil peers with their evil ways? I am continuously baffled by their incompetence.

[druidp]

Aug 29, 2012 14:27:05 GMT -5 llama said:

How is it possible that BofA can be so evil that they outstrip even the most evil of their evil peers with their evil ways? I am continuously baffled by their incompetence.

When you compare the numbers modified by the other 4, it's pretty stark how much they fell short. And I too am not surprised.

[NitaX]

Aug 29, 2012 14:30:35 GMT -5 druidp said:

Aug 29, 2012 14:27:05 GMT -5 llama said:

How is it possible that BofA can be so evil that they outstrip even the most evil of their evil peers with their evil ways? I am continuously baffled by their incompetence.

When you compare the numbers modified by the other 4, it's pretty stark how much they fell short. And I too am not surprised.

I can tell you from what I know in my area is that originally the requirements to do the loan mods were crazy (at least for the Hardest Hit Funds). So, I'm sure that for a private company, they can set some ridiculously low income threshold before they do the modifications. Also, are they informing homeowners that they can qualify?

[ttt]

Aug 29, 2012 14:15:58 GMT -5 druidp said:

"The other four banks covered by the settlement — JPMorgan Chase & Co., Wells Fargo & Co.,Citigroup Inc. and Ally Financial Inc. — reported that they had completed 7,093 modifications of first-lien mortgages worth a total of $749 million.JPMorgan Chase completed the most such modifications with $367 million.

That's an average of $105,597 per mortgage which seems like a lot. Who is getting these reductions???

What are the consequences for BofA for failing to do what they're supposed to?

[epphd]

Dude, don't get me started on BofA.

My parents are short selling their home, and every horror story you're read or seen on short sales? They haz it. They listed their house with a broker (my mom is a mortgage broker by trade, so not exactly ignorant of the field) and within a month, had a cash offer for something like 90% of the mortgage. They also had filed for (and have settled) chapter 7. So at present, BofA is getting $0 from my parents, and could get close to the full value of the loan in cash.

Their file has been shipped around to 5, FIVE, negotiators at BofA. They had paperwork filed and lost, refiled, appraisals scheduled and not completed, and finally - through sheer luck - I spoke with a good friend who works at BofA in marketing. He has been a great ally and has pushed some paper up the chain. Come to find out that one reason their file was most recently held up was because on one page the buyer's name was missing a middle initial. The negotiator took over a week to communicate that. And their communication all takes place via a third party "secure" portal that itself is rife with issues - my parents' broker cannot directly speak to the negotiator via email - has to go through this portal.

The latest we heard, they should actually close in 30-45 days, but at this rate, who knows. They are supposed to move up here imminently (they start paying rent next week), but won't do so until the house closes.

They are looking for a fresh start after a total clusterfuck in their finances (my dad was a former WaMu employee so his retirement, in WaMu stock, is basically nill; my mom was a mortgage broker in SoCal, and my dad now works for an AIG subsidiary) and are mortified to even be in the situation they are in. As conservative republicans this is particularly humiliating for them (bootstraps!), and they are so ashamed for the situation, even though what they are doing strategically makes 100% sense. I just so want for this chapter to be closed so they can move on and start over....

/rant.

[LoveTrains]

I am trying to buy a short sale and the above is like my experience - a long drawn out process that sucks. Stupid BOA.

[ttt]

So the consequences to BofA for failing to abide by the rules are.....

[IIOY]

I have to take the kiddos to soccer practice but I will try to look into this later tonight or tomorrow and hopefully find something substantive here. I'm sure you all will be waiting with bated breath until then!

[LoveTrains]

As a timely follow up, I just heard from my realtor regarding the BOA short sale I am buying.

BOA lost a document we submitted so we need to sign and resubmit it. We sent them this one document three weeks ago.

So help me god, I put my middle initial in the signature. Hopefully that won't be what holds us up....

[EloiseWeenie]

I hate BoA.