CALABASAS, Calif. -- Bank of America, which services one out of five mortgages in the United States, announced today that it has begun processing its first wave of mortgage refinance applications under the U.S. Treasury Department’s Making Home Affordable program. The initiative provides new refinance opportunities to homeowners who previously could not qualify.
“Combined with historically low interest rates, this program has generated significant interest from borrowers seeking the benefit of lower mortgage payments,” said Barbara Desoer, president of Bank of America Mortgage, Home Equity and Insurance Services. “We are proud to be one of the first lenders to take loans from application to closing under the Treasury’s plan, providing the opportunity for more Americans to save money on their monthly mortgage payments and supporting efforts to stabilize the nation’s housing market.”
The Treasury Department’s plan allows homeowners with loans owned by Fannie Mae or Freddie Mac, who are current with their mortgage payments and whose first mortgage does not exceed 105% of the current market value of the property an opportunity to refinance their loan. Complete eligibility guidelines can be found at http://www.makinghomeaffordable.gov/refinance_eligibility.html.
In its first wave, Bank of America will be able to serve the majority of eligible homeowners whose mortgages are serviced by Bank of America or Countrywide and who do not have mortgage insurance on their current loans. Additional borrowers will be included as systems become operational.
Eligible homeowners may benefit from refinancing under the plan because of historically low interest rates coupled with guidelines designed to provide increased flexibility:
- Increased loan-to-value ratios
- No mortgage insurance required on loans that did not previously carry mortgage insurance
- No minimum credit score
“Millions of Americans will potentially benefit from the government’s refinance and loan modification programs,” said Desoer. “In just one month since announcing this program, nearly 200,000 homeowners have contacted us to determine their eligibility for refinancing. We’re pleased to begin offering the program now to the majority of eligible customers and we look forward to expanding the offering to others in the coming weeks.”
Bank of America is in the process of implementing the Treasury Department’s Home Affordable Modification program for Bank of America and Countrywide customers. In the next two weeks, the company expects to begin offering trial modifications under that aspect of the Making Home Affordable plan.
Bank of America has extended its voluntary moratorium on foreclosure of loans that may be eligible for the Home Affordable Modification program until April 30, 2009.
On April 27, 2009, the Bank of America and Countrywide mortgage brands will combine to become Bank of America Home Loans.
For more information about refinancing, Bank of America customers can call 888-256-7683 and Countrywide customers can call 800-593-7798.
Bank of America
Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, nearly 18,700 ATMs and award-winning online banking with nearly 29 million active users.
Following the acquisition of Merrill Lynch on January 1, 2009, Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to more than 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients in more than 150 countries. Bank of America Corporation stock is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
www.bankofamerica.com
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SOURCE: Bank of America
Web site: http://www.bankofamerica.com/
