Loans Expert

Bank of America stepped up its mortgage modification efforts in March, completing 60 percent more than a month ago.

The nation’s largest bank performed 20,666 loan modifications in March under the government’s Home Afforable Modification Program (HAMP). That is up from 12,761 in February.

Bank of America also said it now has 240,000 active trial modifications open under HAMP. Homeowners must go through a trial modification period in the HAMP program before the modification is made permanent.

“We are in a position to show strong results in completion of permanent HAMP modifications as we move into spring,” said Jack Schakett, loss mitigation strategies executive for Bank of America Home Loans.

The value of home mortgage advances in January fell by half from December, when there was a late rush to complete deals before a tax break ended at the New Year, the Council of Mortgage Lenders said Friday.

The value of home mortgages in January was 4.7 billion pounds ($7.1 billion), down 45 percent from January. The value of remortgage loans dropped by 12 percent from December.

“When December and January data are taken together, they show little change in underlying market conditions compared with recent months, with activity still slow but well up on the lows of a year earlier,” said the Council’s director, Michael Coogan.

Six Democratic senators — Tom Carper, Blanche Lincoln, Ben Nelson, Bill Nelson, Mark Warner and Jim Webb — are working to blow up Obama’s top education reform: Ending the corporate profiteering on government loans for college students.

As I reported in Obama’s Real Reform, privatized government loans to students create a massive cash cow for notorious lenders like Sallie Mae and Nelnet:

The Obama administration is trying to prop up small businesses with more funding for community development banks.

Obama’s fiscal 2011 budget seeks $250 million in additional funding for community development financial institutions, or CDFIs, a Treasury Department official told Congress Tuesday.

“We strongly believe that further support is needed for CDFIs to help serve distressed areas manage through the economic downturn,” said Michael Barr, assistant secretary of the U.S. Treasury for financial institutions.

Barr testified before the House Financial Services Committee, which is considering proposals for making federal funding more accessible to small businesses.

Delinquencies on loans in commercial mortgage-backed securities increased last month, largely because of loans made in 2005.

Commercial-property owners got increasingly behind on their mortgages last year as occupancy rates and rents fell, driving property values down from their bubble highs.

Fitch said CMBS delinquencies were 6.29% in February, up from 6% in January. The delinquency index includes 2,505 loans totaling $28.5 billion. Five-year loans originated in 2005 constituted about 30% of the month's newly delinquent loans and comprised the four biggest loans in the period.

Banks know what the public wants to hear: They’re lending money to the little guys.

JPMorgan Chase & Co.’s new ad campaign publicizes the bank’s plans to lend $10 billion to small businesses this year. Other banks, including Wells Fargo & Co. and Huntington Bancshares Inc., also say they’ll extend more small-business loans.

Bold promises, for sure. Just don’t expect to know many details on how they’re delivered.

Forget searching for “small business loans” on the banks’ Web sites to get specifics on the progress of these new programs. Same goes for digging into the banks’ finances, because you aren’t going to find this segment broken out in one spot.

They were the first in their families to attend college. In addition to the values and of hard work and service that they inspired in me, their examples are what motivated me to continue my education and earn a college degree.

General Growth Properties Inc., the second-largest U.S. mall owner, won court approval to reorganize $500 million of loans for two shopping centers, adding to its $11.6 billion in property-level debt that has been reorganized.

Some of the state’s public service workers are getting help from a program that is expanding to help teachers, fire fighters, police officers and EMS workers get low-interest loans.

Drive down just about any street and you’ll see there’s no shortage of homes for sale. One program is giving some heroes just what they need to make the big purchase.

“The everyday heroes are the people that touch and serve the needs of South Carolinians in the state,” said Valarie Williams.

People like teachers, firefighters, police and EMS workers.

On Friday, the U. S. Treasury said that a $30 billion loan fund might help pull the small banks out from the economic crisis, which is hindering their growth plans.

Earlier this month, President Barack Obama had suggested a small business loan program that would use $30 billion in Troubled Asset Relief Program (TARP) funds repaid by larger banks and direct it to a new program, which would require congress approval.

Assistant Treasury Secretary for financial stability, Herbert Allison said, “The proposed design of this new program would provide a clear economic incentive for smaller banks to increase small business lending”.