Bank of America Begins Refinancing Under "Making Home Affordable" Plan

Bank of America, which services one out of five mortgages in the United States, announced last week that it has begun processing its first wave of mortgage refinance applications under the U.S. Treasury Department's Making Home Affordable program. The initiative provides new refinance opportunities to homeowners who previously could not qualify.

"Combined with historically low interest rates, this program has generated significant interest from borrowers seeking the benefit of lower mortgage payments," said Barbara Desoer, president of Bank of America Mortgage, Home Equity and insurance services. "We are proud to be one of the first lenders to take loans from application to closing under the treasury's plan, providing the opportunity for more Americans to save money on their monthly mortgage payments and supporting efforts to stabilize the nation's housing market."

The treasury Department's plan allows homeowners with loans owned by Freddie Mae or Freddie Mac, who are current with their mortgage payments and whose first mortgage
does not exceed 105% of the current market value of the property an opportunity to refinance their loan. Eligibility guidelines can be found on the Making Home Affordable Web Site.

In its first wave, Bank of America will be able to serve the majority of eligible homeowners whose mortgages are serviced by Bank of America or Countrywide and who do not have mortgage insurance on their current loans. Additional borrowers will be included as systems become operational.

Eligible homeowners may benefit from refinancing under the plan because of historically low interest rates coupled with guidelines designed to provide increased flexibility:

- Increased loan-to-value

- No mortgage insurance required on loans that did not previously carry mortgage insurance.

- No minimum credit score

"Millions of Americans will potentially benefit from the government's refinance and loan modification programs," said Desoer. "In just one month since announcing this program, nearly 200,000 homeowners have contacted us to determine their eligibility for refinancing. We're pleased to begin offering the program now to the majority of eligible customers and we look forward to expanding the offering to others in the coming weeks."

Bank of America is in the process of implementing the Treasury Department's "Home Affordable Modification" program for Bank of America and Countrywide customers. In the next two weeks, the company expects to begin offering trial modifications under that aspect of the Making home Affordable plan.

Bank of America has extended its voluntary moratorium on foreclosure of loans that may be eligible for the Home Affordable Modification program until April 30, 2009.

On April 27, 2009, the Bank of America and Countrywide mortgage brands will combine to become Bank of America Home Loans.

For more information about refinancing, Bank of America customers can call 1-888-256-7683 and Countrywide customers can call 1-800-593-7798.