Bank of America Responds to Consumer Desire for Increased Transparency in Home Loan Process with Tools that Clarify Mortgage Terms and Foster Informed Homeownership |
Company Launches Bank of America Home Loans Brand, Reinforces
Responsible Lending Practices
CALABASAS, Calif., April 27 /PRNewswire/ -- Bank of America today
introduced its Bank of America Home Loans brand at locations nationwide and
unveiled new tools through which homebuyers and homeowners will find
greater clarity in the home finance process. The Clarity Commitment(TM), a
single, one-page loan summary clearly presents to borrowers their interest
rate, terms and other details of the loan in plain language. The Bank of
America Home Loan Guide is an interactive Web site that arms customers with
the personalized information to prepare for homeownership and make informed
home buying and refinance decisions.
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"We met with thousands of customers and created tools that reflect the
transparency they want in the home-buying process," said Barbara Desoer,
president, Bank of America Home Loans. "Doing the right thing for our
customers is the foundation of our brand promise to always be a responsible
lender and help create successful homeowners, and these tools exemplify
that promise."
New Tools to Help Customers Make Informed Decisions
The Clarity Commitment is a simple one-page summary in straightforward
language designed to make it easier for customers to understand terms of
their loan. The summary includes information regarding interest rate,
monthly payment, payment terms, and an explanation of closing costs and
other loan information. Provided both at application and at closing, the
Clarity Commitment document is available on most new purchase and refinance
transactions, including traditional and government-backed loans.
In addition, the company introduced the Bank of America Home Loan Guide
as part of the new Bank of America Home Loans Web site
(bankofamerica.com/homeloans). The unique interactive guide is designed to
provide prospective homebuyers and existing homeowners looking to refinance
with a personalized simulation of the home loan process. It helps consumers
understand the criteria that drive lenders' decisions, steps they can take
to be more successful in the search for the appropriate home loan, and how
a home loan fits into their budget and total financial picture. By
explaining key data inputs, highlighting "rules of thumb" and tips with
each step, and providing context around the results, the easy-to-use guide
gives consumers relevant, personalized information that helps them
understand their options and make informed decisions.
"Purchasing a home is one of the biggest decisions an individual makes,
and we take seriously our responsibility to educate customers and arm them
with the information they need to make smart decisions," said Desoer.
"Especially in this environment, it's important that consumers understand
the true, comprehensive costs of homeownership so they can buy a home and
enjoy it with confidence."
Bank of America Home Loans also introduced Flat Fee Mortgage Plus
through the 6,100 Bank of America banking centers. A new mortgage product,
Flat Fee Mortgage Plus has no application fee and one single closing fee
that represents the lender and other fees required for third-party
services. The product features a close-on-time guarantee and best value
guarantee. Flat Fee Mortgage Plus will be available through additional
channels in the future.
Introducing Bank of America Home Loans
The Bank of America Home Loans brand represents the combined operations
of Bank of America's mortgage and home equity business and Countrywide Home
Loans, which Bank of America acquired on July 1, 2008. The Countrywide
brand has been retired.
Countrywide customers already have access to Bank of America's 6,100
banking centers, a coast-to-coast network of Bank of America Home Loans
retail locations, and one of the nation's largest ATM networks. As the new
brand becomes more visible through rebranded locations, account statements,
marketing materials and advertising, customers should continue to use
current methods for managing their accounts and contacting customer service
until the full systems conversion later this year.
The company originates and services one out of every five mortgages in
the country, representing a servicing portfolio of almost 14 million loans.
During the first quarter of 2009, Bank of America funded $85 billion in
first mortgages, helping more than 382,000 Americans purchase a home or
refinance. More than $16 billion of those mortgages were for 102,000 low-
and moderate-income borrowers.
"Bank of America Home Loans has the scale, capacity and capability to
respond to the significant customer demand we've seen recently," Desoer
added. "We are actively lending in this economic environment and continue
to be open for business to new and existing customers."
Other businesses gained through the Countrywide acquisition will retain
their brands, including Balboa Insurance Services, one of the leading
providers of lender-placed property insurance, and LandSafe, a supplier of
pre- and post-closing services.
Reaffirming a Commitment to Stabilize and Strengthen Communities
Bank of America has committed to offer modifications for as many as
630,000 customers to help them stay in their homes. In the first quarter,
the company completed loan modifications for 119,000 borrowers. Bank of
America has more than 6,400 home retention associates dedicated to this
effort.
The company also previously announced a $35 million neighborhood
preservation and foreclosure prevention package focusing on grants and
low-cost loans to help local and national nonprofit organizations engaged
in foreclosure prevention, and to purchase vacant single-family homes for
neighborhood preservation.
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 approximately
55 million consumer and small business relationships with more than 6,100
retail banking offices, more than 18,500 ATMs and award-winning online
banking with nearly 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 4 million small business owners through a suite of innovative,
easy-to-use online products and services. The company serves clients in
more than 150 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.
http://www.bankofamerica.com
SOURCE Bank of America
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CONTACT:
Jumana Bauwens, Bank of America,
+1-800-796-8448, jumana.bauwens@bankofamerica.com
