Bank of America Fully Implementing Treasury’s Making Home Affordable Plan

Nation’s Top Mortgage Servicer Says Program Expands Solutions for Borrowers

March 4, 2009 -- CALABASAS, Calif. – Bank of America, the nation’s largest mortgage servicer, announced that it will participate in the Making Home Affordable Plan based on program guidelines released today by the U.S. Department of the Treasury, extending new foreclosure prevention and refinancing options to eligible customers nationwide. While the company becomes operationally ready, Bank of America will extend its foreclosure sale moratorium for borrowers that potentially qualify for the program.

Article continues below...

The company will offer the refinancing options available under the plan to customers with loans owned by Fannie Mae and Freddie Mac. Under the Making Home Affordable program, these agencies will provide loans as high as 105 percent of the property's value. The company will offer the Home Affordable Modification Program for its own loans and loans it services for Fannie Mae and Freddie Mac, as well as for all other investors unless their servicing contracts prohibit it.

“The affordability focus of the new loan modification plan is consistent with Bank of America’s streamlined loan modification program launched last year. We have confidence in this new plan as it broadens the opportunity to help more homeowners,” said Barbara Desoer, president of Bank of America Mortgage, Home Equity and Insurance Services. “We appreciate that the Obama Administration and the U.S. Treasury have been working closely with leading mortgage servicers, mortgage insurers, industry representatives, consumer groups and other interested parties to develop the guidelines released today.”

Desoer noted that the company has temporarily realigned associates from other areas of the division to support anticipated call volume from Bank of America and Countrywide customers.

In January, under existing programs and commitments, Bank of America completed nearly 39,000 loan modifications for customers who were experiencing financial challenges. The company has made a three-year commitment to offer loan modifications to as many as 630,000 customers, representing more than $100 billion in mortgage financing. More than 5,900 associates are focused on home retention efforts on behalf of Bank of America and Countrywide customers.

Homeowners looking for information about the plan can visit the U.S. Treasury’s self assessment tool on the Internet: http://www.financialstability.gov/makinghomeaffordable/refinance_eligibi...

The U.S. Department of the Treasury advises homeowners interested in refinancing to first contact Fannie Mae (800-7FANNIE) or Freddie Mac (1-800-FREDDIE) to determine if they are the investor on the loan.

Source: Bank of America