Only 14% of Newly Delinquent BoA Mortgages Qualify for HAMP
Recently, Bank of America examined 100 mortgages that were all 60 days or more delinquent and found that only 14 percent qualified for a permanent modification through the federal Home Affordable Modification Program (HAMP). This aligns with other claims that HAMP is not serving as many borrowers as it should be. The article describes a bill that aims to terminate the program and the motivation for the bill, which is based on HAMP’s low success rate. The experience that Bank of America has had with HAMP is outlined and includes the reasons for modification failures, such as difficulty contacting the borrower. Of the borrowers that BofA could reach, many did not qualify for the program because their monthly payments or income limits did not meet HAMP underwriting guidelines.
SOURCE: HousingWire.com, 3/8/11