Loans Expert

Banks that received federal assistance during the financial crisis reduced lending more aggressively and gave bigger pay raises to employees than institutions that didn’t get aid, a American University review found.
The reduction of credit during the worst of the recession raises questions about whether the $247 billion assistance program achieved one of its primary goals: to stimulate the economy by reviving the flow of credit to businesses and individuals.

American University Investigative Reporting Project used federal bank data to conduct the first comprehensive analysis comparing the behavior of 940 banks in the Troubled Asset Relief Program (TARP) and 7,400 banks outside it. Key findings about TARP’s first year:

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.