BofA modifies 70,000 mortgages via government-backed program

CHARLOTTE, North Carolina (Reuters) - Bank of America Corp (BAC.N) said on Tuesday it modified 70,000 customer mortgages from the beginning of January through May under the U.S. government's main program to forestall foreclosures.

The largest U.S. consumer bank converted accounts of 16,000 customers into permanent mortgage modifications during May through the U.S. government's Home Affordable Modification Program, or HAMP.

The bank's announced May HAMP figures will differ from those submitted to the U.S. Treasury Department because of a data recording error during the month that failed to report roughly 7,000 modifications as completed, Bank of America said.

The program allows banks to receive incentive payments for modifying the interest rates and payments for qualifying homeowners in danger of defaulting on their mortgages.

After a three-month trial modification under the HAMP program, borrowers' mortgages are eligible to have their monthly payments permanently reduced.

Since January 2008, Bank of America has completed 630,000 mortgage modifications, including government-backed and bank-run programs.

(Reporting by Joe Rauch, editing by Dave Zimmerman)