NEW YORK (TheStreet) -- Shares of Bank of America (BAC) rose 1.76% to $17.07 in afternoon trading Thursday after The Wall Street Journal reported the bank would offer mortgages at discounted interest rates as it tries to assist borrowers with low incomes or histories of sub-prime credit.
The Journal reports the bank, which is the third-largest mortgage lender, agreed to the discounted mortgages earlier this month.
Under this new program, borrowers can pay "points," upfront fees that reduce the interest rate on a mortgage, to benefit from a greater rate discount than what they would ordinarily receive at other institutions. A point equates to 1% of the loan amount, and customers would ordinarily get a 0.25% discount on the mortgage rates for paying it. Under the new program, customers would receive a 0.5% discount.
TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."