May 23, 2009
BofA: Mortgage holders get $823M in relief
Troubled U.S. homeowners could save up to $823 million from a predatory lending settlement reached this week with Bank of America, state officials say.
Under the terms of the deal, Bank of America neither admitted nor denied wrongdoing but agreed to modify the terms of 390,000 subprime and
option ARM mortgages originated by Countrywide Financial Corp., which was acquired by BofA last year, The Wall Street Journal reported.
Subprime and option ARM mortgage holders with modified plans are saving an average of $195 per month in principal and interest payments, with biggest savings reportedly going to option ARM holders at $311 per month, Bank of America says.
The Journal said BofA has reported that 11,000 borrowers and tenants living in foreclosed buildings who didn't qualify for its loan modification efforts have collected $22.4 million in relocation assistance.