BofA Becomes First to Sign Deal With U.S. on Home-Equity Loans

[babylonsister]

BofA Becomes First to Sign Deal With U.S. on Home-Equity Loans

By Jody Shenn and David Mildenberg


Jan. 26 (Bloomberg) -- Bank of America Corp., the largest U.S. bank, agreed to modify some home-equity loans through the government’s Home Affordable Modification Program amid criticism from bond investors and consumer groups over the federal effort to limit foreclosures.

Bank of America, which handles 14 million home loans including 3 million second-lien mortgages, is the first mortgage servicer to sign a contract committing it to the program, the Charlotte, North Carolina-based company said today in a statement. Chief Executive Officer Brian Moynihan made a “verbal commitment” to the program during a meeting with Treasury Secretary Timothy F. Geithner earlier this month, the bank said.

“For many homeowners facing severe financial difficulty, decreasing the payment on the first mortgage without a reduction in the payment on the second lien may not produce an affordable combined mortgage payment,” Barbara Desoer, president of Bank of America Home Loans, said in the statement.

President Barack Obama has said the HAMP program would target as many as 4 million Americans struggling to hold on to their homes. The plan successfully modified 66,465 first- mortgage loans as of Dec. 31, with almost 800,000 more in trial plans, according to data released Jan. 15 by the Treasury Department.

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http://www.bloomberg.com/apps/news?pid=20601087&sid=atA9eVPsFiQc&pos=4

[Captain Hilts]

1. Creepy so-called 'bank'. Ugh! nt