BofA’s dismal mortgage-modification rate
Yet more proof, if proof be needed, of Bank of America’s dysfunctionality comes in the latest HAMP report from Treasury. BofA has 1,018,192 loans eligible for modification — more than twice as many as anybody else; JP Morgan is in second place with 448,815. Of those million-plus mortgages, BofA has managed to turn the grand total of 98 into permanent modifications — a conversion rate of 0.0096%.
Elsewhere, the conversion rate is much higher: Ocwen Financial, for instance, has 4,252 permanent conversions out of 66,351 eligible loans, for a rate of 6.4%. Even JP Morgan Chase has managed 4,302 permanent conversions, for a rate of just under 1%.
It takes time to move clients through the trial-modification process and into something permanent, of course. But it also takes competence. And that seems to be a commodity in short supply at BofA.