The Debt Forgivness Act was a program started in 2007 and recently extended through December 31, 2014 that addressed the 1099-C reporting and tax obligation of the unpaid balance. Basically all this means is you won't owe taxes on the shortfall, however as far as reporting it's still a forclosure and the lender still took a hit which is what they are reporting. I suspect (but don't know for sure) that the comment about "Bank of America is addressing these concerns with a Government Agency" means that BoA is still looking for guidence from the USGov as to how to write off and report these losses.
BoA took a major hit when they purchased Countrywide including major fines from the US Department of Justice (see http://www.forbes.com/sites/nathanvardi/2014/08/21/bank-of-americas-16-65-billion-settlement-and-the... and they are still cleaning up that mess.
IMO all you can do it wait and ask BoA to update the reporting, the forclosure will report for 7 years even if the balance is zero and you benefited greatly from the lack of the 1099-C tax obligation.
