America

Bank Of America Hasn't Modified Any Mortgages, As It Had Agreed To

Last February, five major banks came to an agreement with the United States government that would provide $26 billion in mortgage relief aid to homeowners.

Today, the program's administrator issued its first report and it found that Bank of America, which was responsible for the biggest portion of the agreement, hasn't modified a single first-mortgage.

The Los Angeles Times reports:

"The report showed that Bank of America Corp. faltered in one key area of the settlement, completing no modifications of first mortgages from March 1 to June 30, the period covered in the first status report released by the Office of Mortgage Settlement Oversight.

"The other four banks covered by the settlement — JPMorgan Chase & Co., Wells Fargo & Co.,Citigroup Inc. and Ally Financial Inc. — reported that they had completed 7,093 modifications of first-lien mortgages worth a total of $749 million.JPMorgan Chase completed the most such modifications with $367 million.

"'More hard work remains as the banks work to meet their obligations,' said Joseph A. Smith, the monitor of the settlement."

The Wall Street Journal reports that overall, however, the five banks "wiped out nearly $1.3 billion in mortgage principal through loan modifications."

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