Bank of America has announced that it will participate in the Making Home Affordable plan based on programme guidelines released by the U.S. Department of the Treasury, extending new foreclosure prevention and refinancing options to eligible customers across the U.S.
While the company becomes operationally ready, Bank of America said that it will extend its foreclosure sale moratorium for borrowers that potentially qualify for the programme.
The company will offer the refinancing options available under the plan to customers with loans owned by Fannie Mae and Freddie Mac. Under the Making Home Affordable programme, these agencies will provide loans as high as 105% of the property’s value. The company will offer the Home Affordable Modification programme for its own loans and loans it services for Fannie Mae and Freddie Mac, as well as for all other investors unless their servicing contracts prohibit it.
Barbara Desoer, president of mortgage, home equity and insurance services at Bank of America, said: The affordability focus of the new loan modification plan is consistent with Bank of America’s streamlined loan modification programme launched last year. We have confidence in this new plan as it broadens the opportunity to help more homeowners.
