Bank Of America Defends Loan Modification Program

WASHINGTON -(Dow Jones)- Bank of America Corp. (BAC) is seeking to put its performance in the Obama administration’s loan-modification program in context, saying that it is grappling with a much larger pool of ineligible borrowers than its rivals.

While the bank leads all participating mortgage servicers in the number of loan modifications offered to borrowers under the program, it trails other major mortgage servicers in the share of eligible borrowers that has received a trial modification.

The bank had started modifications on just 15% of eligible borrowers at the end of November, compared with 43% for Citigroup Inc.’s (C) mortgage unit, CitiMortgage, 31% for J.P. Morgan Chase & Co. (JPM) and 30% for Wells Fargo & Co. (WFC).

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