August 05, 2009

Bank of America Corp. and Wells Fargo & Co. were the worst performers among the biggest U.S. banks in modifying loans for struggling homeowners, according to a Treasury Department report.Bank of America began 27,985 trial loan modifications, or 4 percent of its eligible loans, under the government’s Making Home Affordable Program started this year, the report today shows.

Wells Fargo had a 6 percent rate, trailing JPMorgan Chase & Co.’s 20 percent and Citigroup Inc.’s 15 percent. Wachovia Corp., which Wells Fargo acquired, had a rate of 2 percent.Some of the servicers could have ramped up better, faster, more consistently,” Michael Barr, the assistant Treasury secretary for financial institutions, told reporters in a conference call today.