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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On the treasury website I see this verbiage:
Payments for Short Sales and Deeds-in-Lieu:
Compensation will be provided to servicers and borrowers in order to facilitate short sales or deeds-in-lieu in those cases in which borrowers either fail the net present value (NPV) test (described below) or fail to qualify for, or default under, the modification program.
If there’s more$ in short sales/deeds in lieu-that explains the stalling and denials.