Bank of America loans trail in program

CHARLOTTE, N.C., Oct. 12 (UPI) -- A Bank of America lending executive said the U.S. lender did not relish its low ranking among banks helping struggling homeowners with loan modifications.

"We don't want to be down there," said Ken Scheller, Bank of America's senior vice president for home retention.

The U.S. Treasury said Bank of America has modified loans for 11 percent of the potentially qualified homeowners under the Making Home Affordable program, which includes federal subsidies for banks that extend the terms of a loan or lower interest rates, The Washington Post reported Monday.

In comparison, the Treasury said JPMorgan Chase has modified 27 percent of the potentially qualified loans under the program. Citigroup has modified 33 percent. Saxon Mortgage Services has modified 41 percent.

The Post said Bank of America's efforts were dragged down by the 2008 purchase of Countrywide Financial, which more than doubled its mortgage portfolio.

This summer, Bank of America sent letters to borrowers that mistakenly said their loans were not eligible for modification if they were not backed by Federal National Mortgage Association or the Federal Home Loan Mortgage Corp.

The letter said, "Bank of America is not actively participating in this program."

The bank has stopped sending the letter, the Post said.