Wall Street Journal (04/29/08) P. C3
After the Federal Reserve commenced public hearings on the $4.1 billion acquisition of Countrywide Financial Corp. by Bank of America (BofA), BofA announced that it would take steps to help Countrywide's borrowers keep their properties out of foreclosure. During the next two years, BofA plans to help 265,000 or more borrowers by modifying $40 billion in troubled mortgages. In addition to offering modifications and forbearance arrangements, BofA will eliminate prepayment penalties in some instances, halt new late fees on loans in the foreclosure process and reach out to borrowers who are making timely payments but with some difficulty. However, consumer advocates want the company to do more, such as ensure that Countrywide's work force will be maintained so that borrowers can receive assistance right away. Liam McGee, president of global consumer and small-business banking operations at BofA, insists that at least 3,900 workers will work with customers during the next year.
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