BoA promises help to struggling Countrywide customers

29 April 2008

Bank of America (BoA) is to redouble its efforts to provide financial aid to mortgage borrowers at Countrywide - which the bank wishes to take over in a $4 billion stock deal.

Around $40 billion in loans for at-risk customers facing foreclosure will be "modified" to better terms, president of BoA's global consumer and small business division Liam McGee said.

The executive made the comments at the Federal Reserve Board public hearing, which has been convened to investigate the proposed takeover.

"[We] will continue to offer home loan products to those who can afford them," Mr McGee commented.

"We also recognize that some consumers who are experiencing financial challenges but who ultimately have the ability to pay their loans need our help to pay their loans, and we are ready to help them."

Around 265,000 Countrywide borrowers are set to have their deals changed under the terms of BoA's plan.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development