In response to consumer desire for increased transparency in the home loan process, Bank of America has launched its so-called “Clarity Commitment” to promote responsible lending.
The move, which just happens to coincide with the rebranding of Countrywide to “Bank of America Home Loans,” aims to help borrowers better understand the terms of their mortgages, something Countrywide seemed to have trouble getting right during its storied existence.
The Clarity Commitment itself is a single, one-page loan summary that presents the borrower’s mortgage rate, terms, closing costs, and details of the loan in “plain terms,” somewhat similar to the existing Good Faith Estimate.
“We met with thousands of customers and created tools that reflect the transparency they want in the home-buying process,” said Barbara Desoer, Bank of America Home Loans president, in a release.
“Doing the right thing for our customers is the foundation of our brand promise to always be a responsible lender and help create successful homeowners, and these tools exemplify that promise.”
The form is provided both at time of application and at closing, and will be available on most new purchase and refinance transactions, including government-backed loans (FHA loans, VA loans).
Bank of America Home Loans also introduced its so-called “Flat Fee Mortgage Plus,” which has no application fee and one single closing fee, along with closing and best value guarantees. It’s unclear if the Bank of America No Fee Mortgage is being replaced.
The Countrywide brand was finally retired today as well, nearly a year after Bank of America acquired the ailing mortgage lender.
The combined company originates and services one out of every five mortgages in the United States, representing a servicing portfolio of almost 14 million loans.
(photo: gaetanlee)