While the economy appears to be recovering from a debilitating recession, millions of Americans are still struggling to make mortgage payments and stay in their homes. As recently as a few weeks ago, the Wall Street Journal warned of “new mortgage-default waves” as more people lose their jobs, option ARMs reset, and home values continue to stagnate, leaving homeowners with mortgage balances higher than the value of their property.

Federal resources exist to help Americans in those circumstances, notably the Making Home Affordable refinancing and modification programs. In our recently released Consumer Financial Education Today report, we highlighted the way Chase effectively positions those government resources online alongside their own counseling and assistance initiatives, in this case via their Homeownership Center. In contrast, Bank of America’s primary Web resource for homeowners was, until recently, the elegant but not necessarily timely Home Loan Guide. The site walks users through the process of buying a home, refinancing or borrowing from home equity, but does not specifically appeal to distressed homeowners or mention government assistance. Fortunately, the firm now offers a website to address these troubled homeowners - the Home Loan Assistance center.

Bank of America recently posted a small image to its public homepage that leads to the center. The sleek, dynamic site sets a positive tone and does a good job connecting users with resources relevant to their specific situation. Menu options address the full range of conditions, from homeowners current on their mortgages but interested in lowering payments, to those who have already received foreclosure notices. For each type of troubled homeowner, the site provides helpful links or a number to call. In many cases, B of A also offers assistance program eligibility guidelines, tips on the information to help expedite the process, and other key steps to take.

We feel this is an important, if belated, move for Bank of America, given its role as the nation’s largest mortgage lender. Granted, resources and counseling were available to B of A borrowers before the launch of this site, but the firm could have done a better job publicizing their availability. Given the public’s low regard for the financial services industry, firms like B of A should be doing all they can to show that they have their customers’ interests at heart and are willing to work with people to keep them in their homes. The Home Loan Assistance center should (hopefully) help get the word out.