Bank of America Corp. said it modified about 25,000 home loans in October, a 52 percent increase from the previous month amid the lender’s freeze on foreclosure sales in 27 states.
About 90 percent of the modifications were approved through the bank’s own programs, the Charlotte, North Carolina-based lender said in a statement. The rest of the revisions were approved through the U.S. government’s Home Affordable Modification Program, or HAMP. Modifications typically involve reduced interest rates or extending the time in which loans must be repaid.
Congressional leaders and housing industry activists have criticized HAMP for failing to stem the growth of home foreclosures, and banks for making the process too slow and complex. About 2.1 million U.S. households are in foreclosure proceedings, with 5 million more loans at least 30 days delinquent, data provider Lender Processing Services Inc. said in a Nov. 16 report.
At the end of October, about 50,000 Bank of America customers were in active trial modifications through HAMP, down from 62,000 in September and more than 250,000 in March, the lender said. Bank of America has resumed foreclosure sales in 23 states, while freezing seizures in 27 others as it studies its processes. The bank is the largest in the U.S. by assets and the second-largest home lender after San Francisco-based Wells Fargo & Co.