Bank of America completed or approved nearly $30 billion in real and meaningful relief to more than 330,000 homeowners and offered life-of-loan interest rate reductions to more than 40,000 others in 2012 through programs of the National Mortgage Settlement (NMS). The bank reported its progress through December 31, 2012 in a quarterly report to the federal program monitor, who released the details today.
Bank of America’s performance across all programs continues to reflect significant progress since various NMS programs were implemented between May and August 2012, and the bank remains on track to meet its total financial obligations by the end of the first quarter of 2013. The figures provided here represent the bank’s reporting of the actual amount of assistance offered to customers. The determination of credits earned toward the settlement obligations will be based on the types of relief and the amount of relief completed from those offers and will be made by the federal monitor, Joseph A. Smith, Jr., at a future date.
Progress across Bank of America’s consumer relief programs through December 31, 2012 includes:
- First-Lien Principal Forgiveness - Nearly 47,000 customers had been approved for offers of first-lien modifications or received forgiveness of previous principal forbearance, providing more than $7 billion in total principal reduction.
- Home Equity Relief - About 144,000 customers had received extinguishment or modification of a home equity loan or line of credit, totaling more than $9.8 billion in reduced principal.
- Interest Rate Reduction – Outreach began in August, and by year-end, more than 40,000 homeowners who are current on payments but are underwater had been offered an interest rate reduction at no cost to the borrower. More than 7,500 rate reductions had been completed.
- Other Programs - At year-end, 142,000 customers had received $13 billion in benefits from other NMS relief programs. This included nearly 99,000 qualifying short sales providing a total of $11.8 billion in relief from unpaid principal balances on the loans.
Principal reductions on first liensMore than 42,500 homeowners have been approved for offers of first-lien principal reduction since May, and more than 21,000 had completed their required three monthly trial payments and converted to a completed modification.