Bank of America is reacting to a Treasury Department report that found it to be among the worst performers among the biggest U.S. banks in modifying loans for struggling homeowners.

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 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.

Bank Of America released this statement about the report and its loan modification efforts:

"Bank of America helped 400,000 customers since 2008 through our own loan modification programs, not including the 68,000 customers who are now in active trial modifications under the Administration’s program.

"MHA is now the centerpiece of our modification program, and our momentum under the program is clear -- one in five of the offers extended and one in five of the homeowners in trial mods to date are through Bank of America.

"In the four days between the Treasury’s cut-off for their reporting in August and the end of the month, Bank of America alone placed nearly 9,000 customers in trial modifications.

"Importantly, Bank of America is not proceeding with foreclosure sales for customers who may be eligible for a modification under HAMP or our other modification programs.

"Bank of America is committed to the Making Home Affordable program and as part of the Administration’s national goal, we are on track to reach 125,000 customers in active trial modifications by Nov. 1."