A report Wednesday by a federal watchdog singles out Bank of America and JPMorgan Chase & Co. as receiving the most complaints from struggling homeowners participating in housing programs created under the financial-system bailout.
The two banks are among the largest mortgage servicers under the Troubled Asset Relief Program, according to the report by TARP’s special inspector general. TARP is the name for the $700 billion federal bailout created in 2008 in response to the mortgage meltdown. The Home Affordable Modification Program, designed to help homeowners avoid foreclosure by modifying their mortgages to more affordable payments, is among TARP’s housing programs.
According to the report, borrowers serviced by Bank of America and JPMorgan under the TARP-related housing programs complain about lack of communication and misplaced application documents. Borrowers have also complained about trial modification problems, among other issues, in calls to the inspector general’s hotline.
Other servicers are not generating the same volume of complaints about those issues, the report says.