This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BAC $16.01 1.26%
C $53.49 2.04%
JPM $61.77 0.80%
WFC $55.55 1.39%
AAPL $129.09 0.49%


DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs