New book by Larry Connors Click here Improve your trading - See how
Bank of America Corp., which bought Countrywide earlier this year, said it will modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions.
With Countrywide facing lawsuits from several states -- including Connecticut -- alleging deceptive lending practices, Bank of America, based in North Carolina, developed the deal with state attorneys general to "achieve affordable and sustainable mortgage payments" for certain borrowers, according to a statement from the bank.
The program, which will launch Dec. 1, is aimed at those who financed their homes with subprime loans or certain option adjustable-rate mortgages, known as option ARMS, from Countrywide that originated before Dec. 31, 2007. Option ARMs are loans that give the borrower several options for which type of payment is made to the lender. The loans typically come with low introductory "teaser" rates that later reset to a higher amount.
The program focuses on homeowners who are very delinquent or in danger of becoming very delinquent on their mortgages. Those who are eligible will not be charged loan modification fees.
"We are confident that, together with the attorneys generals, we have developed a comprehensive program that provides more solutions than ever before to assist troubled borrowers and put them back on the path to sustained homeownership," Barbara Desoer, president of Bank of America's Mortgage, Home Equity and Insurance Services division, said in a statement.
The program could help as many as 4,500 Connecticut homeowners, said state Attorney General Richard Blumenthal.
Each borrower will be evaluated for eligibility and offered a solution when possible, Blumenthal said. During the evaluation period, Countrywide will agree not to initiate any foreclosure proceedings or advance any pending foreclosures, he said.
Depending on their particular situation, consumers may have several options, including: a Federal Housing Authority refinance under the federal Hope for Homeowners program, interest rate reductions, restoration of a mortgage's introductory interest rate for five years, or a principal balance writedown for borrowers who are single-property owners and have no equity in their homes.
To see more of New Haven Register, or to subscribe to the newspaper, go to http://www.nhregister.com. Copyright (c) 2008, New Haven Register, Conn. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
