Currently, Bank of America is reducing the interest rate on qualifying loans to 4.25 percent. The individual modified rate will be offered on the basis of market rates in effect at the time the homeowner’s eligibility is confirmed. Bank of America estimates that eligible customers will realize nearly a 2 percent average reduction in rate, which may provide hundreds of dollars in savings on their monthly mortgage payments, depending on their principal balance and loan terms. The interest rate reduction program is available on loans that are both owned and serviced by Bank of America and meet certain other criteria.
Short sales and deeds-in-lieu
While Bank of America’s first goal is to keep customers in their homes, transition becomes the inevitable or chosen route for some customers. In these cases, Bank of America encourages consideration of a short sale or deed-in-lieu as alternatives to foreclosure because they are less disruptive for the borrower, have less negative impact on credit reporting and can benefit local housing market conditions.
Borrowers completing short sales or deeds-in-lieu may receive additional relief under the settlement through enhanced relocation assistance payments above $1,500 and permanent waivers of the deficiency amount.
More than 300 servicing standards were established in the settlement, covering loss mitigation, foreclosure and bankruptcy documentation and processes; third-party vendor oversight; restrictions on dual-tracking, and requiring a single point of contact, among other categories. Bank of America is in compliance with the requirements of all of the servicing standards.
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 55 million consumer and small business relationships with approximately 5,500 retail banking offices and approximately 16,300 ATMs and award-winning online banking with 30 million active users. 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 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.