As part of the agreement under the national mortgage settlement, Bank of America has completed or approved more than $4.75 billion in principal reductions on first mortgages, with the average principal reduction exceeding $150,000.
Through the bank’s principal reduction program, 30,000 homeowners have been approved for a trial modification or received a permanent modification as of the end of September.
The $25 billion national mortgage settlement was reached in February between state and federal officials and the five largest mortgage servicers.
BofA said it’s on its way to meet the obligations under the settlement within the first year of the three-year agreement. BofA agreed to provide more than $7.6 billion in relief through first and second lien modifications and foreclosure prevention solutions.
However, BofA explained that under the agreement, banks will not receive full dollar-for-dollar credit for all of the assistance provided to customers, and the settlement monitor will make the crediting determinations.
According to a BofA release, borrowers who qualified for the program saved an average of 35 percent on their monthly mortgage payment.
The bank also expects to reach out to 200,000 eligible customers within the first year of the program.
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