Apparently No One Told BofA About the Mortgage Servicers Settlement Progress Report

biofa first liens Apparently No One Told BofA About the Mortgage Servicers Settlement Progress ReportBack in February, the five biggest U.S. mortgage servicers reached a $25 billion settlement with states attorneys general investigation over foreclosure practices.

The terms of the settlement were fairly complex: The servicers would pay about $5 billion in direct payments to states and borrowers, and provide about $20 billion in so-called consumer relief. So much would go to principal reductions, so much so much for refinancing underwater loans, etc.

The independent monitor overseeing the settlement released a progress report today, and the news was maybe a little bit embarrassing for a certain North Carolina-based bank. As of June 30, the lender had not processed a single first-lien loan modification. (Said bank had processed $4.79 billion in shorts sales under the settlement.)

BofA  has an explanation of course, and we suppose it’s reasonable. According to Bloomberg:

Separately today, Bank of America said it had completed about $3.2 billion more in relief since June 30. The Charlotte, North Carolina-based lender had forgiven about $1.65 billion in home equity lines of credit, completed $1 billion in short sales and $596 million in mortgage modifications from the end of June through Aug. 21.

“You are seeing a faster start on short sales completed under the agreement because that didn’t require a new process to be built, compared to first-lien modifications and the refinance program,” said Dan Frahm, a Bank of America spokesman. Eventually, most of the Bank of America credits will be loan modifications, he said.

And we suppose it’s not a race (although if you were a borrower waiting on a modification, you might be forgiven for expecting a little bit of urgency). Nonetheless, you’d think the lender might have figured out a way to keep from throwing up a zero.