Washington, D.C. February 9, 2012 – U.S. Senator Barbara Boxer (D-CA) today called on Bank of America to end the delays that borrowers have encountered in attempting to refinance their mortgages. According to a new report in Bloomberg News, some homeowners are being asked to wait between 60 and 90 days to submit a refinance application.
Senator Boxer, along with Senator Johnny Isakson (R-GA), pushed for changes to the Home Affordable Refinance Program (HARP) to reduce the barriers that have kept millions of responsible homeowners from refinancing and taking advantage of today's record low interest rates. Delays from Bank of America in processing increased refinance demands undermine the very purpose of the program.
In her letter, Senator Boxer wrote, "It is critical that Bank of America take the steps necessary to meet the increased demand for refinancing caused by changes in the HARP program so that responsible homeowners will not have to wait to refinance."
The full text of the letter is below:
February 9, 2012
Mr. Brian T. Moynihan
Bank of America Corporate Center
100 N. Tryon Street
Charlotte, NC 28255
Dear Mr. Moynihan:
I am deeply concerned about a report from Bloomberg News that Bank of America is failing to meet the increased demand for home refinances and is asking borrowers to wait between 60-90 days before submitting a home refinance application. These delays could prevent borrowers from taking advantage of today's historically low interest rates and improvements recently made to the Home Affordable Refinance Program (HARP).
As you may know, I fought for improvements in the HARP program, such as the elimination of risk-based fees on Fannie and Freddie-loans and the removal of refinance limits on underwater properties. Making it easier for responsible homeowners to refinance at today's low rates will help keep families in their homes and boost the economy by putting more money in the pockets of borrowers. Unfortunately, the Bloomberg News report suggests that Bank of America has been unable to manage the increased demand for refinancing, which undermines the purpose of the HARP program.
According to Bloomberg News, other lenders including JP Morgan, Wells Fargo, and Citibank have not taken steps to discourage borrowers from refinancing. In fact, JP Morgan has increased capacity in order to process their increased volume of applications.
It is critical that Bank of America take the steps necessary to meet the increased demand for refinancing caused by changes in the HARP program so that responsible homeowners will not have to wait to refinance.
Sincerely,
Barbara Boxer
United States Senator
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