Bank of America helps Countrywide Financial Corp with a billion dollar rescue plan

Bank of America who own Countrywide Financial Corp will today announce a program to help upto 125,000 Californian homeowners who are struggling with risky mortgages from Countrywide.

The deal will save mortgage holders billions of dollars, and will be the nation’s largest loan modification program to settle charges of lending abuse brought by California and other states.

The Bank of America Corps. Program is set to reduce payments to countrywide borrowers and up to $8.7 billion in other benefits nationwide. Across the nation almost 400,000 loans will be examined, out of that around 125,000 would be in California to find the best way to rework the loan to make it more affordable for the struggling mortgage holder, this could include reducing the interest or principal or completely switching customers for fixed rate loans Although banking officials are aware than some borrowers are beyond help and they would need additional help from the investors who owned the loans, however this has not been easily attainable in the past.

Read the full article: Latimes