This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank of America Refi Delays Must Stop: Boxer

NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report) CEO Brian Moynihan received a letter on Thursday from U.S. Senator Barbara Boxer (D., Calif.) calling on the bank to end delays in refinancing applications.

In her letter, Boxer cited a report from Bloomberg News on Wednesday that claims the bank has asked customers to wait 90 days before submitting a refinancing application, citing "two people with knowledge of the policy."

The reason for the delay, according to the report, is that a government program known as the Home Affordable Refinance Program, which helps homeowners lower payments, has increased refinance applications and created a backlog at Bank of America. Citing the report, Boxer states in her letter that JPMorgan Chase (JPM - Get Report), Wells Fargo (WFC - Get Report) and Citigroup (C - Get Report), "have not taken steps to discourage borrowers from refinancing."

The report does not actually claim the bank is actively discouraging refinancing activity, but rather that it is simply strained beyond capacity. At the same time, it cites spokespeople from JPMorgan and Wells Fargo saying they are handling the increased activity successfully, while the Citigroup spokesman says the bank is "experiencing longer hold times but we continue to serve our customers with refinance opportunities," according to the report.

The letter from Boxer comes the same day attorneys general in 49 states and the Obama administration reached a $25 billion settlement of a mortgage servicing investigation with the five largest servicers, including Wells Fargo, Bank of America, JPMorgan, Citigroup and Ally Financial that aims to spur even more refinancing activity.

An email message to Bank of America spokespeople asking for a response to Senator Boxer's letter was not returned.

-- Written by Dan Freed in New York. Follow this writer on Twitter.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $16.36 0.00%
C $53.28 0.00%
JPM $64.13 0.00%
WFC $53.54 0.00%
AAPL $113.29 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs