What you need to know about HAMP and your bank

Current HAMP Directives https://www.hmpadmin.com/portal/programs/directives.html

The Treasury Department says approximately one million Bank of America customers are eligible for a loan modification.

• 160,000 are in a trial modification program, 16 percent.
• 98 homeowners with Bank of America loans were able to get their temporary loan modification converted to permanent status in November under HAMP.
• BOA has completed a total of 230,000 loan modifications across non-HAMP programs, according to Dan Frahm, a Bank of America communications executive.
  “In the past two years, Bank of America has helped more than 630,000 customers with a loan modification through our own programs or with a trial modification under HAMP,” said Jack Schakett, Credit Loss Mitigation Strategies Executive with Bank of America, who insists the figures sound worse than they are.
  While the government estimates that Bank of America has one million customers who are eligible for HAMP (because they are 60 days behind in their mortgage payments or at imminent risk of default), Schakett says the bank thinks only 340,000 customers are truly eligible for HAMP.
  Of those, he points out, 160,000 are in a trial modification, or just under 50 percent.
  The missing 650,000 homeowners (one million customers minus 340,000 that Bank of America believes truly are eligible) are ineligible for HAMP because they fall into one of these four categories:
  The homeowners have vacated their home.
  The homeowners no longer occupy the home as a principal residence.
  The homeowners are unemployed.
  The homeowners already have a relatively affordable housing payment of less than 31 percent of their income.
  (These 650,000 loans could wind up in foreclosure, as part of the 4 million homes that might wind up in foreclosure in 2010.