From Bank of America: Bank becomes first mortgage servicer to commit to Treasury's Second Lien Modification Program
Bank of America announced that it is the first mortgage servicer to sign an agreement formally committing to participation in the pending second-lien component of the federal government's Home Affordable Modification Program (HAMP)
Bank of America has systems in place to begin implementing the Second Lien Modification Program (2MP) with the release of final program policies and guidelines by federal regulatory agencies, which is expected soon. 2MP will require modifications that reduce the monthly payments on qualifying home equity loans and lines of credit under certain conditions, including completion of HAMP modification on the first mortgage on the property.
"For many homeowners facing severe financial difficulty, decreasing the payment on the first mortgage without a reduction in the payment on the second lien may not produce an affordable combined mortgage payment," said Barbara Desoer, president of Bank of America Home Loans.
"2MP will become a valuable addition to Bank of America's broad toolkit of potential solutions for customers facing financial difficulty and will increase our ability to help even more homeowners," said Desoer.
Read more at Housing Wire: BofA First to Join HAMP program for Second Liens
This looks interesting, but as unsuccessful or disorganized as loan modifications on first mortgages have been, it may be a while before this one kicks in.
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