Bank of America saw improvements in the Making Home Affordable modifications that they have made this year according to the August 2010 report, which was recently released. While an increase in the number of permanent home loan modifications shows that some homeowners are still receiving assistance, there is an overall concern on whether the program and servicers are still helping homeowners or if performance has waned.
Bank of America has 72,851 active trial modifications as of August 2010. This is seen as a positive by many, but pessimists are quick to point out that the cumulative number of trial modifications started within the Home Affordable Modification Program for Bank of America numbers at 316,421. Also, with only 79,859 permanent modifications having been made as of August, there is concern over whether homeowners are able to benefit from the modification plan.
There have been criticisms levied against the Obama modification program and mortgage servicers, but according to the August 2010 Making Home Affordable Report, only 5% of loans from large servers were evaluated incorrectly. Essentially, it’s believed that mortgage servicers, while they have made mistakes, have not done so to the extent that would justify the cancellations that have been seen in the program.
Homeowners are still angry with mortgage servicers when they are denied a modification or have their home loan modification canceled, but there are cases where homeowners are simply unable to benefit from this mortgage assistance. While, again, Bank of America and other mortgage servicers have made mistakes and may have denied some homeowners a modification when they could have qualified, there is concern that the larger problems within the modification program simply stem from factors like unemployment that it impossible for homeowners to pay their mortgage even went assistance programs are in place.