Bank of America Completes Agreements for Hardest Hit Fund Unemployment Programs in All 18 Eligible States and DC

Bank of America has completed agreements to leverage the federal government’s Hardest Hit Fund (HHF) through participation in unemployment assistance programs in all 18 eligible states and the District of Columbia, and is now operational with all of them.

Last year, the government announced the HHF initiative targeting states with sustained unemployment rates at or above the national average and falling property values. Since then, Bank of America has worked closely with the Department of Treasury and participating state housing finance agencies (HFAs) to design and implement programs that provide assistance to financially distressed homeowners, including interim payment assistance to unemployed borrowers.

“This is an important additional tool in the broad range of assistance programs and solutions we offer to customers who are struggling to make their mortgage payments,” said Rebecca Mairone, national mortgage outreach executive. “The unemployment assistance programs, in particular, extend help to homeowners who otherwise may not be eligible for the government’s modification program and other homeownership retention solutions due to lack of qualifying income.”

Homeowners must contact their state HFA for program guidelines, which vary, and to apply for assistance. Each state HFA manages its own program, including determining a homeowner’s eligibility and making qualifying mortgage payments directly to the bank.

States participating in HHF unemployment assistance programs include Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee, plus the District of Columbia.

In the short time that a limited number of state pilot programs have been in operation, the collective state HFAs have about 2,700 applications for unemployment assistance in process for Bank of America customers and have provided $2.8 million toward mortgage payments for the benefit of over 700 customers. More than $1 million of those payments has been received in the first half of May.

“Bank of America has completed mortgage modifications for nearly 840,000 homeowners since January 2008, and we are doing more than ever in our outreach efforts through community events and new customer assistance centers,” Mairone noted. “Nevertheless, modifications require that the homeowner is able to make reasonable monthly payments, so servicers have been unable to offer much help beyond short-term forbearance to those who are unemployed.

“The Hardest Hit Fund helps to fill this gap by providing temporary payment assistance to unemployed homeowners. Bank of America is pleased to be participating in the program in every HHF state as part of our commitment to helping homeowners through difficult times.”

HHF programs are targeted to low- and moderate-income homeowners, and other eligibility criteria are determined by each state’s HFA.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 58 million consumer and small business relationships with approximately 5,800 retail banking offices and approximately 18,000 ATMs and award-winning online banking with 30 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

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