The program offers principal reductions to as low as 100 percent of current value and is resulting in an average of about $160,000 in reduced principal balance and 44 percent average reduction in monthly payments.
More than 4,200 additional borrowers have received complete forgiveness of a total of $263 million in principal forbearance pre-dating the March 1 implementation of the settlement.
Second-lien extinguishments and modifications
Nearly $9.7 billion in assistance to second-lien holders has been offered through home equity debt elimination and extinguishment of the lien, releasing any claim by the bank to the mortgaged property. More than 141,000 borrowers have received second-lien extinguishment offers providing average financial relief of about $68,000.About 2,200 additional loans have been modified through the Making Home Affordable second-lien program, reducing the balances owed by a total of $158 million. Interest rate reductions With most of the eligible population in the pipeline by the end of 2012, Bank of America is confident that goals for the interest rate reduction program will be met in the first quarter of 2013. Offers extended through the end of 2012 presented average rate reductions of 2 percent, leading to average payment savings of $234 each month for the life of the loan. Short sales Borrowers completing short sales may receive additional relief under the settlement through enhanced relocation assistance payments above $1,500 and permanent waivers of the deficiency amount. About 23,500 borrowers who completed short sales have received a total $162 million and enhanced relocation benefits. In addition to the $11.8 billion in deficiencies waived on short sales completed between March 1 and December 31, Bank of America has waived any future claim for recourse on more than $1 billion in additional deficiencies on about 18,600 short sales completed prior to the NMS implementation. Servicing standards Bank of America also reported to the monitor that it was in compliance with all servicing standard metrics in force under the NMS in the fourth quarter.