Bank of America Corp, seeking approval to buy the largest U.S. mortgage company, said it would help reduce home foreclosures by modifying or working out hundreds of thousands of mortgage loans to help more than 265,000 customers.
If shareholders and government regulators approve the sale of Countrywide Financial Corp, the bank said its modification plan would reach at least $40 billion worth of troubled loans over the next two years.
The company also said that the combined company would continue the bank's policy of allowing tenants to live in properties up to 60 days after the property was foreclosed. It would pay tenants $2,000 to leave within 30 days.
Bank of America is taking part in a hearing by the Federal Reserve to gather public opinion about the proposed Countrywide takeover.
We will continue to work with distressed borrowers to match the customer's repayment ability with the appropriate loss mitigation option, including loan modifications, forbearances, repayment plans, lower rates and principal reductions, said Liam McGee, President of Bank of America's Global Consumer and Small Business Banking division.
We will not assess new late charges for customers in foreclosure and we will waive certain other associated fees, when permitted, he said.
The bank also announced a ten-year $2 billion national corporate philanthropy goal. It would work with communities to identify the most critical local issues and support community leaders and organizations help confront those challenges, according to Andrew D. Plepler, president of the Bank of America Charitable Foundation.