The executive team of Bank of America Corp.'s mortgage unit will operate from more than 2,000 miles away from the bank's headquarters in Charlotte, N.C., following its upcoming acquisition.
Following its projected acqusition of Countrywide Financial Corp. during the third quarter, BoA will locate the combined residential mortgage headquarters in Calabasas, Calif., according to an announcement today. Countrywide is currently headquartered in Calabasas.
The bank also said it will dump the Countrywide brand and operate the combined unit under the Bank of America brand.
The deal is still subject to approval by regulators and Countrywide shareholders.
BoA said it expects to modify $40 billion in troubled loans during the next two years. The efforts are projected to prevent 265,000 foreclosures.
BoA noted it will also continue its policy of letting tenants remain in foreclosed properties 60 days after foreclosure proceedings are complete. A bonus of $2,000 will be given to tenants who voluntarily leave the property within 30 days after the foreclosure process is done.
"We will continue to work with distressed borrowers to match the customer's repayment ability with the appropriate loss mitigation option, including loan modifications, forbearances, repayment plans, lower rates and principal reductions," BoA executive Liam McGee reportedly testified at a Federal Reserve hearing in Los Angeles. "We will not assess new late charges for customers in foreclosure and we will waive certain other associated fees, when permitted."
BoA reiterated its decision to stop all subprime lending and exotic programs, cut back on some low-documentation loans and limit prepayment penalties after the acquisition.
Countrywide to Eliminate Some Programs
Countrywide Financial Corp. will eliminate option-ARM, subprime and low-documentation programs following its upcoming merger.