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VOL. 127 | NO. 49 | Monday, March 12, 2012

B of A to Reduce Home Loans

By The Associated Press

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NEW YORK (AP) – Bank of America is providing mortgage relief to about 200,000 homeowners.

Homeowners that qualify are those whose home values have fallen below what they owe on their mortgages. Bank of America will reduce the amount owed by the homeowners by as much as $100,000 in some cases. Only mortgages that are currently owned by Bank of America will qualify. Those that are owned by government entities Fannie Mae and Freddie Mac, or backed by the Federal Housing Administration will not be eligible.

The move will help the bank reduce the amount of penalties it owes to the government’s Housing & Urban Development agency by $850 million.

The penalties were part of a broader $25 billion settlement announced Feb. 9 by federal and state attorneys general and the largest mortgage lenders in the country to resolve investigations into abusive home lending and fraudulent foreclosure practices.

About 11 million American households are “underwater” on their mortgages, meaning they owe more than their homes are worth. The broader settlement with five mortgage lenders is expected reduce loans for only about 1 million of those Americans and send checks to others who were improperly foreclosed upon.

Of the five major lenders, Bank of America’s penalties were the highest: $11.8 billion.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 84 369 6,105
MORTGAGES 107 461 7,302
FORECLOSURE NOTICES 0 0 0
BUILDING PERMITS 196 1,019 13,309
BANKRUPTCIES 46 243 4,574
BUSINESS LICENSES 32 131 2,340
UTILITY CONNECTIONS 53 352 4,896
MARRIAGE LICENSES 26 110 1,460

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