Bank of America Corp. said it has seen "significant gains" in the number of modified mortgages through the government's Home Affordable Modification Program.
The giant bank said more than 12,700 of its customers now had a permanent Home Affordable modification, quadruple the number of modifications that had been completed a month earlier. B of A said another 13,700 permanent modifications are pending, which means final loan terms have been approved and are waiting for customers' signatures.
Hamp is a government program designed to lower monthly mortgage payments for homeowners who can no longer afford to make those payments.
"In the past month, our concerted customer outreach initiative has driven a substantial increase in the rate of conversions from trial to permanent modifications," said B of A executive Jack Schakett.
To qualify for a permanent loan modification, a borrower with a trial modification is required to make three consecutive monthly mortgage payments and complete the documentation. There has been concern that many applicants wouldn't be able to meet the requirements because of the amount of paperwork and additional training and processing required by lenders.
Shares of Bank of America were up 1.6% to $14.68 in recent trading amid a broad market rally.