Bank (of America) offers struggling borrowers more aid

By Jenifer B. McKim, Globe Staff | July 19, 2010

Struggling New England homeowners looking for lower mortgage payments from Bank of America Corp. will be able to meet face-to-face with counselors as part of what the lender says is an effort to improve services.

Today, the nation’s largest servicer of home loans will open an office in Dedham dedicated to helping homeowners seeking loan modifications as a way to stave off foreclosure.

Glenda Gabriel, Bank of America’s neighborhood lending executive, said the new office is part of a national effort to better assist homeowners who complain their refinancing documents get lost and their pleas for help are not heard.

The office will be staffed with seven counselors who will meet with borrowers by appointment only; another five will travel to other New England communities to work directly with borrowers. While preparing for the official opening, counselors have been working with some customers since May.

“We understand we haven’t always met the service levels our customers deserve,’’ Gabriel said. “We apologize for this. We have made great strides in meeting this demand.’’

The bank’s announcement was met with a mix of skepticism and hope by housing advocates.

Bank of America has 478,811 borrowers nationwide who are at least 60 days behind on their mortgages and eligible for loan modifications under the Obama administration’s Making Home Affordable Program, created last year. So far, the lender has approved 62,969 permanent loan modifications, according to a May report by the federal government.

The loan modification office is “a positive step,’’ said Bill Minkle, executive director of the Ecumenical Social Action Committee Inc., a Jamaica Plain nonprofit that works to help homeowners. “We have had a lot of communication problems with Bank of America for a long time. “

Lewis Finfer, executive director of the Massachusetts Communities Action Network, a faith-based community organizing group in Boston, said anything Bank of America can do to improve its service is commendable. But, he added, “They still should be judged on their record of performance that is not great.’’

Five other loan-modification offices have been opened by Bank of America in other states since September. It’s part of an effort by national lenders to reduce the number of foreclosures, said Brad Dwin, a spokesman for Hope Now, an organization of counselors, mortgage companies, and investors that works to help homeowners. “It definitely addresses any type of communication issues,’’ Dwin said.

Alex and Mary Jo Gulino of Uxbridge said they have already benefited from the Dedham Bank of America office. Mary Jo Gulino said she and her husband spoke with counselors there a few weeks ago after months of pleas for assistance proved fruitless. Following a meeting that lasted less than an hour, she said, they received a new loan offer a few days later that reduced their interest rate from about 8 percent to 2 percent for five years, shaving about $800 off their monthly payment. The interest rate will not go above 4.5 percent during the 30 years of the loan, she said.

“We were afraid we were going to lose our house, and now it’s a relief to be able to open the mail and not be afraid of what’s in there,’’ she said.

The office will be open from 10 a.m. to 7 p.m. on weekdays and from 10 a.m. to 2 p.m. on Saturdays. For more information call 781-251-4000.

Jenifer B. McKim can be reached at jmckim@globe.com.