CHARLOTTE, N.C. – Bank of America Corp. says it is expanding a program simplifying the disclosure of customers’ key borrowing terms to include those affected by the federal government’s home loan modification program.
The bank has started offering a one-page summary of key terms – what BofA calls the “Clarity Commitment” – to customers receiving mortgage modifications under the government’s Home Affordable Modification Program. The bank said the summary will be offered to those who receive modifications under non-government programs in the coming weeks.
Bank of America introduced the Clarity Commitment to borrowers taking out new first mortgages in April. The bank later extended the concept to home equity loans and reverse mortgages, and more recently to credit card holders.
The bank’s disclosure program was in response to criticism that the banking industry did not disclose enough information to borrowers about the terms of some loans during the housing boom.
“Our Clarity Commitment for new mortgages has been very well received as a demonstration of our dedication to responsible lending and the creation of successful homeowners,” said Rebecca Mairone, national servicing executive for Bank of America Home Loans. “Modified mortgages may have considerably different terms than the original contract. As our customers transition to their new affordable payment, it is important that they have this simple and concise explanation of the terms of their modified loan.”
The bank said nearly 615,000 of the 14 million mortgages it services have been modified, including more than 160,000 through the government program and another 450,000 through non-government programs and other methods.
Bank of America Corp. (NYSE: BAC) is one of the world’s largest financial institutions, serving more than 53 million consumers and small businesses via 6,000 retail offices and 18,000 ATMs. To learn more, visit www.bankofamerica.com.
