Consumer Groups Ask Bank of America to Rebuild Broken Dreams

February 20, 2008 No Comments »


The California Reinvestment Coalition sent a letter signed by 91 California community groups to Bank of America CEO Kenneth Lewis asking him to do his part to help stem the housing crisis in the state.

Among the list of demands, the group wants an immediate foreclosure moratorium on ALL home loans in both Bank of America’s and Countrywide’s portfolios, including all those being serviced.

The CRC also wants the mortgage lender to grant loan modifications to borrowers at risk of losing their homes, moving those in question into 30-year fixed-rate mortgages with mortgage rates no higher than six percent.

Additionally, the Coalition wants BofA to maintain Countrywide’s headquarters in Calabasas, and its loan servicing unit in Simi Valley in order to properly manage the mass loan modifications.

And finally, the group asked Lewis to develop a plan to retain as many Countrywide employees as possible, noting that past BofA mergers have resulted in the losses of 30,000 jobs.

“Bank of America has the opportunity to rebuild the broken dreams of Countrywide borrowers. Your leadership on this important issue is needed now more than ever. CRC members and allies look forward to meeting with you,” the letter concludes.

Sounds like some serious demands there, especially the 30-year fixed mortgages for under six percent!

But at the same time, the moves they make will have a huge impact on the housing industry as a whole, with their combined servicing portfolio of $1.9 trillion, or roughly 21 percent of the national mortgage market.

Read the entire letter here.

(photo: nanabou)

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