$15.8 Billion in Mortgage Relief to 164,000 Bank of America Customers Delivered Through National Mortgage Settlement

  $15.8 Billion in Mortgage Relief to 164,000 Bank of America Customers
  Delivered Through National Mortgage Settlement

    Performance Through September 30 Shows Progress in All Consumer Relief
 Programs; Bank on Pace to Meet Total Obligations in First Year of Three-Year
                                  Agreement

Business Wire

CALABASAS, Calif. -- November 14, 2012

Bank of America completed or approved a total of $15.8 billion in consumer
relief for about 164,000 homeowners as of September 30 through programs
established under the National Mortgage Settlement. Quarterly progress reports
from all five banks involved in the agreement with federal and state
governments will be filed today with participating state attorneys general and
the federal program monitor.

Bank of America’s performance across all programs reflects significant gains
during the third quarter, and the bank reinforced that it is on track to
meeting its total financial obligations within the first year of the
three-year agreement. Progress across consumer relief programs through
September 30 includes:

  *First-Lien Principal Forgiveness - 30,000 customers were approved or had
    completed first-lien modifications providing $4.75 billion in principal
    reduction. Additionally, $230 million in pre-settlement forbearance has
    now been completely forgiven.
  *Home Equity Relief - Nearly 45,000 customers had received a qualifying
    modification or complete extinguishment of a home equity loan or line of
    credit, totaling $2.5 billion in relief.
  *Other Programs - More than 62,000 customers have completed qualifying
    short sales or deeds-in-lieu of foreclosure, providing a total of $7.4
    billion in relief from unpaid principal balances on the loans. In
    addition, the bank provided an additional $617 million combined in
    enhanced relocation assistance and pre-settlement deficiency waivers.
  *Interest Rate Relief – In implementing the settlement programs, Bank of
    America’s priority was to establish traction with first-lien and home
    equity forgiveness programs to assist customers at greatest risk of
    foreclosure. With momentum now built in these programs, the bank is
    quickly ramping up activity on its interest rate reduction program for
    borrowers who are making on-time payments but have limited or no equity in
    their homes. As of October 31, 23,000 homeowners – more than half of the
    bank’s estimated eligible population - have been offered this assistance.
    The majority of this activity has occurred since the end of September and,
    as a result, will be reflected in completed rate reductions in future
    quarterly reports. Through September 30, approximately 1,000 rate
    reductions were completed, providing interest rate relief on loans
    representing nearly $250 million in unpaid balances.

Bank of America customers in all 50 states have received assistance from the
settlement programs, with the largest numbers of customers benefiting to date
residing in California, Florida, New York, New Jersey, Illinois, Maryland,
Arizona and Nevada.

Principal reductions on first liens

Of the 30,000 homeowners approved for offers of first-lien principal
reduction, nearly 5,800 had completed their required three monthly trial
payments and converted to a completed modification as of September 30. About
85 percent of those approved for trial plans are successfully completing the
process.

The program is resulting in an average of nearly $150,000 in reduced principal
balance and 35 percent reduction in monthly payments.

Bank of America is offering principal reductions on loans it owns and
services, as well as loans it services for other mortgage investors under
delegated authority agreements. Fannie Mae, Freddie Mac, FHA, VA are not
participating in the principal reduction program.

Second-lien extinguishments and modifications

The overwhelming majority of assistance to second-lien holders – more than
$2.4 billion of the $2.5 billion total in home equity relief through September
30 – has been provided through home equity debt elimination and extinguishment
of the lien, releasing any claim to the mortgaged property. The average
financial relief provided through lien extinguishment to about 43,000
customers is more than $56,000.

About 1,400 additional loans that did not meet the parameters of the
extinguishment program have been modified, reducing the balances owed by a
total of $100 million.

The second-lien extinguishment and modification programs are intended to place
the homeowners in an improved financial situation by reducing their monthly
debt obligations and, potentially, help them regain equity in their property.
Only loans that are both owned and serviced by Bank of America qualify for
these programs under the settlement.

Interest rate reductions

Bank of America is providing interest rate reductions at no cost to qualified
customers who have remained current on their first-lien mortgage payments but
owe more than 80 percent of the value of their home today.

The bank’s process features rate reduction with no associated fees or costs
and allows eligible homeowners to benefit from an expedited approval process
with significantly reduced documentation requirements.

Currently, Bank of America is reducing the interest rate on qualifying loans
to 4.25 percent. The individual modified rate will be offered on the basis of
market rates in effect at the time the homeowner’s eligibility is confirmed.
Bank of America estimates that eligible customers will realize nearly a 2
percent average reduction in rate, which may provide hundreds of dollars in
savings on their monthly mortgage payments, depending on their principal
balance and loan terms. The interest rate reduction program is available on
loans that are both owned and serviced by Bank of America and meet certain
other criteria.

Short sales and deeds-in-lieu

While Bank of America’s first goal is to keep customers in their homes,
transition becomes the inevitable or chosen route for some customers. In these
cases, Bank of America encourages consideration of a short sale or
deed-in-lieu as alternatives to foreclosure because they are less disruptive
for the borrower, have less negative impact on credit reporting and can
benefit local housing market conditions.

Borrowers completing short sales or deeds-in-lieu may receive additional
relief under the settlement through enhanced relocation assistance payments
above $1,500 and permanent waivers of the deficiency amount.

Servicing standards

More than 300 servicing standards were established in the settlement, covering
loss mitigation, foreclosure and bankruptcy documentation and processes;
third-party vendor oversight; restrictions on dual-tracking, and requiring a
single point of contact, among other categories. Bank of America is in
compliance with the requirements of all of the servicing standards.

Bank of America

Bank of America is one of the world's largest financial institutions, serving
individual consumers, small- and middle-market businesses and large
corporations with a full range of banking, investing, asset management and
other financial and risk management products and services. The company
provides unmatched convenience in the United States, serving more than 55
million consumer and small business relationships with approximately 5,500
retail banking offices and approximately 16,300 ATMs and award-winning online
banking with 30 million active users. Bank of America is among the world's
leading wealth management companies and is a global leader in corporate and
investment banking and trading across a broad range of asset classes, serving
corporations, governments, institutions and individuals around the world. Bank
of America offers industry-leading support to more than 3 million small
business owners through a suite of innovative, easy-to-use online products and
services. The company serves clients through operations in more than 40
countries. Bank of America Corporation stock (NYSE: BAC) is a component of the
Dow Jones Industrial Average and is listed on the New York Stock Exchange.

For more Bank of America news, visit the Bank of America newsroom.

                            www.bankofamerica.com

Contact:

Reporters May Contact:
Dan Frahm, Rick Simon or Jumana Bauwens, Bank of America, 1.800.796.8448
pressroom@bankofamerica.com
 
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