CitiGroup Mortgage Modification Program Soars; Bank of America Lags
Posted on | November 10, 2009 | 4 Comments
The Making Home Affordable mortgage modification program was very slow getting off the ground but has picked up steam. Currently, Citigroup leads the major lenders in loan modifications while Bank of America is pulling up the rear. CitiGroup accounts for almost 40% of the modifications while Bank of America only accounts for 14%.
The latest report to be released shows that President Obama’s foreclosure prevention program has helped approximately 650,000 home loan borrowers. The program got off to an extremely slow start but exceeded 500,000 modifications at the beginning of October. When initially released, it was expected that the Making Home Affordable plan would help modify three to four million mortgages in two years.
To modify this many mortgages, banks and lending institutions would have to complete 375,000 to 500,000 in a quarter. This goal has recently been adjusted to three years instead of two. California and Florida rank as one and two for the most loan modifications. These states also rank very high in terms of the number of foreclosures as well. Approximately 85% of mortgage are covered under the Making Home Affordable Program.
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Author: Alan Lake
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4 Responses to “CitiGroup Mortgage Modification Program Soars; Bank of America Lags”
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November 10th, 2009 @ 12:40 pm
Bank of America is causing suffering its client badly. They are intentionally making delay in this modifications. Some actions should be taken against bank of america. On the other hand both Bank of America and Citigroup are still practicing provocative and tricky risky lending practice.
November 12th, 2009 @ 3:14 pm
As a Broker of a real estate office, I could not agree with you more. whether its a short sale, modification Bank of America has become the armpit of banks. Whats really crazy that is never discussed is the banks strategic delay tactics with foreclosures, on vacant homes they are pulling down prices everyday on condo communities the pressure falls on the remaining owners in the community. Sooo many of these could be corrected with 40 year mortgages and principal reductions on primary residences.
The bank cancelled a foreclosure sale because an offer came in at 75K the owner wanted to mediate and modifiy the 140,000 mortgage, they are accepting 75K and trashing the prices of the other remaining homes in the area apalling. What rational business man would do this!! Insane. Not to mention the strategic releases so we think the banks are becoming profitable again! Give me a break BOA are liars and should have been let go when they got in trouble. Tax payers will pay for this when common sense solutions are there….
November 29th, 2009 @ 9:18 pm
Bank of America stated that I qualify for a program that require me to make 3 on time monthly payments while they consider the mortgage modification. I’m making $500 less a month, but they want me to make the same $1400 payment for the 3 months.
I don’t get it. Can someone tell me what they have experienced?
December 4th, 2009 @ 3:53 am
As a mortgage processor, I received a file from a client who had made an offer to purchase a Bank of America foreclosure. BOA would not ratify the contract unless the borrower provided complete financial disclosure, i.e.: agreement to pull credit, provide bank statements, pay stubs and tax returns. They would not accept our company loan approval letter as is typical in a normal transaction. Through all of this, I assured my clients that this was probably to ensure that the property would not go into foreclosure again. Once BOA completed their review and agreed to the contract terms, Bank of America made a formal offer to do my clients to do their loan at a reduce rate and close in 2 weeks. Proactive tricky lending business is an understatement.