Kieth Cockrell, Bank of America's Michigan president, said
Wednesday that the company is days away from officially announcing its
participation in Michigan's Hardest Hit fund, which helps residents in
danger of losing their homes.
The nearly $500-million fund is
expected to benefit more than 49,000 households in the state by June 30,
2013, but big banks have been slow to commit to the program since its
launch last July.
Bank of America and Chase Bank are the largest
mortgage lenders in Michigan, said Mary Townley, director of the
Michigan State Housing Development Authority's homeownership division.
Chase began participating in Hardest Hit more than a month ago. GMAC and
PNC Bank are also days away from officially committing to the fund, Townley said.
Cockrell
made his comments shortly after Brian Moynihan, Bank of America's CEO,
told members of the Detroit Economic Club that helping financially
distressed homeowners is the bank's top priority.
"The problem of
delinquent mortgages and falling home values is the most stubborn,
entrenched and damaging economic problem our country faces today,"
Moynihan said during a speech at the Detroit Marriott. "It is important
to our economic recovery that the housing market stabilizes."
Of
the 4 million mortgage modifications completed by U.S. banks since 2008,
750,000 were done by Bank of America, Moynihan noted. He said one of
every three mortgage modifications in the country is now being made by
the bank, which has been stepping up its efforts in this area.
Moynihan
acknowledged that many homeowners that received modifications are
defaulting on their loans. "We're reaching a peak where some customers
will be dealing with the reality that despite the myriad programs and
our best efforts, foreclosure is unavoidable," he warned.
Despite the grim outlook for the housing market, Moynihan expressed cautious optimism about the national economy.
The bank is forecasting U.S. economic growth of 3% this year.
By: Katherine Yung, Detroit Free Press Business Writer