Bank of America to Modify at Least $40 Billion in Mortgages

April 28, 2008 No Comments »

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Bank of America today released details of its proposed $1.5 trillion “Community Development and Investment Goal” aimed at reducing foreclosures nationwide and keeping more borrowers in their homes.

When the Charlotte-based bank takes over Countrywide Financial later this year, the combined mortgage giant plans to modify or workout at least $40 billion in troubled mortgages in the next two years.

Bank of America said it believes these loan modification efforts will keep at least 265,000 at risk borrowers in their homes.

Additionally, the combined company will extend Bank of America’s policy of allowing tenants to live in properties subject to foreclosure for 60 days after the completion of foreclosure proceedings.

And tenants who leave within 30 days of the close of foreclosure proceedings will receive a $2,000 cash-for-keys payment to offset moving costs.

The bank also announced a new 10-year, $2 billion national corporate philanthropy goal.

The mortgage lender’s new combined national consumer mortgage headquarters will be in Calabasas, California, the former Countrywide location, less the Countrywide name.

The deal is expected to close in the third quarter, subject to Countrywide shareholder and regulatory approval.

(photo: johnjack)

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