Bank of America boosts staff handling troubled loans by 2,000

June 24, 2010 by · Leave a Comment
Filed under: Real Estate News 

This is the reality for what is needed to handle this real estate crisis.  We have chosen not to let people default so home will be foreclosed on and that would bring prices down across the board.   We have chosen the path of modify home loans and re-writing principal balances.   I still support homeowners that actually have the means to support the mortgage and we should keep them in their homes.  If not then we need to face the fact that the home needs to be foreclosed and put back on the market at a fair value.

Hopefully the 18,000 employees that BofA has put in this division will help move through the massive backlog of defaulted homes they have on their books.   Currently interest rates are extremely low levels so if people can refinance out of their high interest rate loan, this is the time to take advantage of this opportunity.

Bloomberg – Bank of America Corp., the second- largest U.S. home lender, added 2,000 employees since April to work with borrowers having trouble paying their mortgages, a senior executive said.

The lender now has more than 18,000 workers in “default management,” a 60 percent increase since January 2009, Barbara Desoer, president of Bank of America’s home-loan and insurance unit, said in testimony prepared for a congressional hearing on U.S. housing policy tomorrow. Those workers handle 100,000 calls a day, she said. Wells Fargo & Co., the largest U.S. home lender, Bank of America and other companies have hired thousands of employees or shifted staff from other departments to work with borrowers who have lost jobs or experienced declining incomes. Banks repossessed a record 257,944 homes in the first quarter, 35 percent more than a year earlier, according to Irvine, California-based RealtyTrac Inc. More than a fifth of U.S. mortgage holders owed more than their homes were worth, Seattle- based real estate data provider Zillow.com reported last month.

“Given the depth of the nation’s recessionary impacts on homeowners, a considerable number of customers will transition from homeownership over the next two years,” Desoer said in the testimony. “We must compassionately and responsibly help those customers who have exhausted all their options and can no longer afford to stay in their homes.”

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