Bank of America Announces Nationwide Homeownership
Retention Program for Countrywide Customers
Nearly 400,000 Countrywide Borrowers Could Benefit After Program Launches December
CALABASAS, Calif., Oct. 6 /PRNewswire/ -- Bank of America today announced the creation of a
proactive home retention program that will systematically modify troubled mortgages with up to
$8.4 billion in interest rate and principal reductions for nearly 400,000 Countrywide Financial
Corporation customers nationwide.
The program was developed together with state Attorneys General and is designed to achieve
affordable and sustainable mortgage payments for borrowers who financed their homes with
subprime loans or pay option adjustable rate mortgages serviced by Countrywide and originated
prior to December 31, 2007. Bank of America acquired Countrywide July 1, 2008.
"We are confident that together with the Attorneys General we have developed a comprehensive
program that provides more solutions than ever before to assist troubled borrowers and put them
back on the path to sustained home ownership," said Barbara Desoer, president, Bank of America
Mortgage, Home Equity and Insurance Services. "Since acquiring Countrywide in July, we have
committed significant resources and developed innovative programs to help as many Countrywide
customers as possible stay in their homes."
Countrywide mortgage servicing personnel will be equipped to serve eligible borrowers with new
program elements by December 1, 2008 and will then begin proactive outreach to eligible
customers. Foreclosure sales will not be initiated or advanced for borrowers likely to qualify until
Countrywide has made an affirmative decision on the borrower's eligibility.
The centerpiece of the program is a proactive loan modification process to provide relief to eligible
borrowers who are seriously delinquent or are likely to become seriously delinquent as a result of
loan features, such as rate resets or payment recasts.
Various options will be considered for elig