Last week Bank of America became the first of the mega-lenders to invite homeowners to apply for refinancing applications under the “Making Home Affordable” program.
Bank of America will be able to serve the majority of its eligible customers – homeowners whose mortgages are serviced by Bank of America or Countrywide and who do not have mortgage insurance on their current loans. Additional borrowers will be included as systems become operational. Some 200,000 borrowers have contacted the bank since the program was announced March 4.
According to a BofA spokeswoman, the bank had to wait until Freddie Mac and Fannie Mae were ready to accept refinancing applications. The bank is locking in loans for 60 days.
In the next two weeks, BofA plans to begin loan modifications for those homeowners facing default. It is extending its moratorium on foreclosures through April to give borrowers an opportunity to modify.