Wells Fargo/Bank of America and Loan Modifications, We're Better Now
Um, Bank of America doesn't really have a choice. What's Wells Fargo's motivation?
I guess when you've got Barney Frank breathing down your neck that's all the motivation you need.
American Banking News:
Wells Fargo (NYSE: WFC) and Bank of America (NYSE:BAC) have stepped up their loan modification efforts just one month after being accused of helping almost no borrowers. In total, lenders nationwide have now provided 360,000 modifications to homeowners.
The federal government’s $75 billion mortgage relief program got a major boost when Bank of America Corp. and Wells Fargo & Co significantly ramped up their efforts to modify home mortgages during the month of August.
According to a monthly report from the Treasury Department, Bank of America more than doubled the number of loan modifications compared to the month of July, totaling almost 60,000 modifications for the month of August. Wells Fargo was able to increase the number of modifications that it offered by nearly 65% to just over 33,000 modifications. These two banks have helped speed up the Obama’s Administration mortgage relief program to a total of 360,000 modifications.
Many have argued that the Obama administration’s Home Affordability Mortgage Program (HAMP) has not been able to help homeowners quickly enough. The administration had set a goal of modifying more than 500,000 mortgages by November 1st, but it appear that number may fall short.
In a recent Los Angeles Times Article, Rep. Barney Frank (D-MA), chairman of the House Financial Services Committee, stated “I am disappointed at the pace of this program.” Frank has not been the only one critical of the sluggishness of the program. Several homeowner advocacy and consumer advocacy groups have also been critical of the program’s handling.
In a report to the U.S. House on Wednesday, Michael Barr, assistant Treasury secretary for financial institutions stated, “There are signs the plan is working but we can do better.” Barr continued, “For the first time, last month we were able to see data on which companies were helping families avoid foreclosure and which companies were not.”
blah blah blah blah, you asshats shouldn't have allowed all of those people to end up in their houses in the first place.