Bank of America organized 45 dedicated outreach events this year in local markets across the country where the lender is seeing high levels of mortgage delinquencies among its customer base.“Our goal is to get at the consumer,” Ron Sturzenegger, BofA’s legacy asset servicing executive, told DS News at one such event held in Irving, Texas, just outside of Dallas earlier this month.
The company undertakes an aggressive marketing campaign ahead of each of its outreach events to get the word out to mortgage customers in the area who are having trouble making their payments.
The communication blitz includes direct mail, personal phone calls, email messaging, and partnerships with local marketing agencies to reach as many distressed homeowners as possible.
Unfortunately, Sturzenegger says many customers “choose not to engage.” In Irving, for example, pre-event outreach efforts targeted 7,500 BofA borrowers. Of those, only 500 registered to come in to the Irving Convention Center and talk one-on-one with a BofA loss mitigation specialist.
That’s nearly a 7 percent response rate, which is relatively high, according to Sturzenegger. He says in some cities, they see only a 1-2 percent response rate.
“We’re a bit disappointed in the numbers at some events,” Sturzenegger said, “but we’re going to keep at it.”
The out-of-pocket expense to put on each event, which typically lasts three days, can run pretty high – from renting out a facility, to promotional and marketing materials, to full-service staffing.
Nevertheless, Sturzenegger says, “We’re going to keep doing it as long as we need to.”
Just how long that will be is hard to predict, but with mortgage delinquencies and foreclosures still at high levels, Sturzenegger says Bank of America expects to host at least the same number of local outreach events in 2012.
Those customers who do accept BofA’s invitation to attend a local event can expect a solution to their mortgage troubles quickly – whether it’s a loan modification or other foreclosure alternative.
Sixty percent of customers who come in with all the documentation they’ve been instructed to bring receive a decision on-site. Those who aren’t decisioned that very day will have an answer from the bank within 30 days.
In addition to one-on-one face time with a loss mitigation specialist, the homeowner experience at these outreach events includes a 30-minute educational session explaining their options and alerting them of scams to avoid, and a sit-down with a local nonprofit housing counselor to assist with budgeting and financial planning.
Bank of America’s 45 dedicated outreach events, such as the one held in Irving, are what the bank calls its single-servicer events, and they are just one vehicle the lender employs to get in front of distressed homeowners.
BofA also takes part in multi-servicer events held across the country, such as those put on by the HOPE NOW Alliance, and it has a mobile mortgage help van that makes stops in hard-hit communities.
In addition, Bank of America has set up brick-and-mortar customer assistance centers in 50 cities where borrowers can meet face-to-face with loss mitigation specialists. (Carrie Bay - dsnews.com)
The out-of-pocket expense to put on each event, which typically lasts three days, can run pretty high – from renting out a facility, to promotional and marketing materials, to full-service staffing.
Nevertheless, Sturzenegger says, “We’re going to keep doing it as long as we need to.”
Just how long that will be is hard to predict, but with mortgage delinquencies and foreclosures still at high levels, Sturzenegger says Bank of America expects to host at least the same number of local outreach events in 2012.
Those customers who do accept BofA’s invitation to attend a local event can expect a solution to their mortgage troubles quickly – whether it’s a loan modification or other foreclosure alternative.
Sixty percent of customers who come in with all the documentation they’ve been instructed to bring receive a decision on-site. Those who aren’t decisioned that very day will have an answer from the bank within 30 days.
In addition to one-on-one face time with a loss mitigation specialist, the homeowner experience at these outreach events includes a 30-minute educational session explaining their options and alerting them of scams to avoid, and a sit-down with a local nonprofit housing counselor to assist with budgeting and financial planning.
Bank of America’s 45 dedicated outreach events, such as the one held in Irving, are what the bank calls its single-servicer events, and they are just one vehicle the lender employs to get in front of distressed homeowners.
BofA also takes part in multi-servicer events held across the country, such as those put on by the HOPE NOW Alliance, and it has a mobile mortgage help van that makes stops in hard-hit communities.
In addition, Bank of America has set up brick-and-mortar customer assistance centers in 50 cities where borrowers can meet face-to-face with loss mitigation specialists. (Carrie Bay - dsnews.com)
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