Bank of America Corp. said Thursday it has completed or approved $155.6 million in principal reductions offers on first mortgages in Nevada in the five months since the national mortgage settlement was reached.
As of Sept. 30, 854 Nevada homeowners were approved for trial modifications or had made the required three payments during the trial period and converted to permanent modifications in the principal reductions.
Nationally, Bank of America has completed or approved $4.75 billion in principal reductions, for some 30,000 homeowners. Within the first year of the program, the bank anticipates 200,000 qualifying customers will be offered principal reductions.
In a statement, Bank of America said its early results put it "well on the way to meeting its total obligations within the first year of the three-year agreement."
The average principal reduction is more than $150,000 for customers qualifying for principal reduction. The average monthly payment is dropping 35 percent.
To meet the terms of the national settlement, Bank of America agreed to provide mote than $7.6 billion in modifications of first and second mortgages and foreclosure avoidance through short sales.
Contact reporter Chris Sieroty at email@example.com or 702-477-3893.