Bank of America launches Home Loans brand, reinforces responsible lending practicesMortgagePress.comBank of America, Bank of America Home Loans, The Clarity Commitment, Barbara Desoer, Flat Fee Mortgage Plus
Bank of America has 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, 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.
"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.
For more information, visit www.bankofamerica.com.
