Bank of America to Exit Risky Mortgages

CHARLOTTE, N.C. -- Bank of America says it will alter its mortgage product menu once it completes its acquisition of mortgage lender Countrywide Financial, The Associated Press reported Tuesday.

Bank of America says it will offer traditional mortgages that fit government-sponsored enterprise guidelines. It will also offer interest-only fixed-rate and adjustable-rate mortgages that have long reset periods to lessen the likelihood of short-term payment spikes, the AP reported.

The Charlotte, N.C.-based bank will not originate subprime mortgages or loans that allow customers to make payments for less than the monthly interest due, the AP reported.

It will also greatly reduce offerings of other nontraditional loans, like those that allow for little documentation, the AP reported.

-- NYSSCPA.org News Staff

Posted on 4/22/08