Bank of America, Wells Fargo Not so Hot on Loan Mods
If Bank of America is "America's bank" and America is underwater and in desperate need of their help to refinance, why are they being so stingy with the loan modifications?
Does Timmy have to grab Bernaulson's shotgun and start forcing loan mods or what?
Bank of America Corp. and Wells Fargo & Co. were the worst performers among the biggest U.S. banks in modifying loans for struggling homeowners, according to a Treasury Department report.
Bank of America began 27,985 trial loan modifications, or 4 percent of its eligible loans, under the government’s Making Home Affordable program started in March, the report today shows. Wells Fargo had a 6 percent rate, trailing JPMorgan Chase & Co.’s pace of 20 percent, and Citigroup Inc.’s 15 percent.
“Some of the servicers could have ramped up better, faster, more consistently,” Michael Barr, the assistant Treasury secretary for financial institutions, told reporters in a conference call today. “We expect them to do more.”
The government is trying squeeze better results out of its main anti-foreclosure program, which has put about 235,000 borrowers on the path to loan modifications out of the 4 million targeted for help. National Economic Council Director Lawrence Summers has said the Treasury report is an effort to create transparency about which mortgage servicers are helping most.
“The biggest servicers certainly have the biggest ships to turn,” Seth Wheeler, a deputy assistant Treasury secretary for federal finance said in an interview yesterday before the report was released. “Some of the strongest performers are smaller servicers, but it’s not a uniform correlation.”
The report shows the levels of homeowner assistance for the 38 companies participating in President Barack Obama’s $75 billion loan modification program. The Obama administration said last month that it’s setting a goal of starting at least 500,000 trial modifications by Nov. 1.
The poorly-performing loan modders claim that the problem is not having enough resources to staff offices and process applications. Quick, someone cut these fuckers a check for payroll!