Bank of America Promises Faster HAMP Processing

April 8, 2010 - Consumers have reported a number of problems with the federal government's home loan modification program, known as the Home Affordable Modification Program (HAMP). Many homeowners at risk of foreclosure have reported that lending institutions delay or stall the process, which puts these consumers in a more precarious situation than they were before.

According to reports at The Charlotte Observer, Bank of America announced on Tuesday that they would speed up their processing of HAMP applications and respond more quickly to homeowners with questions about the process. The bank pledges to respond to homeowners at risk of foreclosure within 72 hours, although that will only be after unrolling the 72-hour response time to mortgage counselors. There's no word on when the 72-hour pledge will go into effect for consumers.

Bank of America is the largest bank in the United States, and it handles more than 20% of all mortgages in the country. While this effort to be more responsive is a step in the right direction, there are numerous problems with the HAMP program, many of them stemming from delays and stall tactics on behalf of the banking industry.