CHARLOTTE, NC (WBTV) - Fifty thousand Bank of America borrowers are at risk of losing mortgage modifications mandated by the government.
The Treasury's Home Affordable Modification Program (HAMP) requires big banks to make a percentage of their loans more affordable, and because of it, Bank of America now has 160,000 customers enrolled in the program.
Sixty five thousand of those people have already made three timely payments on their new loans.
But they could still could lose their homes.
Poor communication and missing paperwork, according to BofA testimony today before the House Financial Services Committee.
The bank's Credit Loss Mitigation Strategies Executive, Jack Schakett, told the House that 50,000 HAMP-qualified borrowers have not submitted all of their required documents, and so their modifications are set to expire on Dec. 31st.
"It is unclear why this has happened to such a high degree," Schakett said. "However, several factors likely contributed to this including ineffective communications with customers [and] shortcomings in document maintenance..."
Schakett says the bank receives over 100,000 calls a day from customers concerned and frustrated over their mortgages.
So, now BofA thinks it could be easier to communicate by snail mail.
The company says it sent "an urgent request" to all borrowers in danger of losing their new loans, complete with a return prepaid express mail envelope to expedite the paperwork.
BofA will send another letter next week to customers it hasn't heard from.