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 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 company’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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- Bank of America Originates Nearly $100 Billion in Mortgages During Third Quarter
- Bank of America Invests $2 Billion in Countrywide
- Bank of America Funds $85 Billion in First Mortgages, Ups Loans Losses
- Consumer Groups Ask Bank of America to Rebuild Broken Dreams
- Bank of America Originally Offered $10 Per Share for Countrywide
