Monitor - BofA lags in modifying loans under national settlement

WASHINGTON Wed Aug 29, 2012 7:12pm IST

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WASHINGTON Aug 29 (Reuters) - Bank of America Corp hasn't completed any first-mortgage modifications that reduce loan balances for borrowers so far under a $25 billion settlement reached this year, the official monitoring the agreement said Wednesday.

The five financial institutions that are part of the settlement have provided $10.6 billion in consumer relief from March 1 to June 30, with $8.7 billion in the form of short sales in which customers sell their homes for less than the mortgage's value. Bank of America produced $4.8 billion in short sales, the most of the five banks.

JPMorgan Chase & Co completed $367 million in first lien modifications in which borrowers had their loan balances reduced, according to the first report by settlement monitor Joseph Smith. The other institutions in the settlement are Wells Fargo & Co, Citigroup Inc and Ally Financial Inc.

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