Meaningful Relief Provided to More Than 370,000 Bank of America Customers in 2012 Through National Mortgage Settlement Programs

  Meaningful Relief Provided to More Than 370,000 Bank of America Customers in
  2012 Through National Mortgage Settlement Programs

   Bank Provides Principal Reduction, Lower Interest Rates, Other Relief to
                              Eligible Customers

Business Wire

CALABASAS, Calif. -- February 21, 2013

Bank of America completed or approved nearly $30 billion in real and
meaningful relief to more than 330,000 homeowners and offered life-of-loan
interest rate reductions to more than 40,000 others in 2012 through programs
of the National Mortgage Settlement (NMS). The bank reported its progress
through December 31, 2012 in a quarterly report to the federal program
monitor, who released the details today.

Bank of America’s performance across all programs continues to reflect
significant progress since various NMS programs were implemented between May
and August 2012, and the bank remains on track to meet its total financial
obligations by the end of the first quarter of 2013. The figures provided here
represent the bank’s reporting of the actual amount of assistance offered to
customers. The determination of credits earned toward the settlement
obligations will be based on the types of relief and the amount of relief
completed from those offers and will be made by the federal monitor, Joseph A.
Smith, Jr., at a future date.

Progress across Bank of America’s consumer relief programs through December
31, 2012 includes:

  *First-Lien Principal Forgiveness - Nearly 47,000 customers had been
    approved for offers of first-lien modifications or received forgiveness of
    previous principal forbearance, providing more than $7 billion in total
    principal reduction.
  *Home Equity Relief - About 144,000 customers had received extinguishment
    or modification of a home equity loan or line of credit, totaling more
    than $9.8 billion in reduced principal.
  *Interest Rate Reduction – Outreach began in August, and by year-end, more
    than 40,000 homeowners who are current on payments but are underwater had
    been offered an interest rate reduction at no cost to the borrower. More
    than 7,500 rate reductions had been completed.
  *Other Programs - At year-end, 142,000 customers had received $13 billion
    in benefits from other NMS relief programs. This included nearly 99,000
    qualifying short sales providing a total of $11.8 billion in relief from
    unpaid principal balances on the loans.

Principal reductions on first liens

More than 42,500 homeowners have been approved for offers of first-lien
principal reduction since May, and more than 21,000 had completed their
required three monthly trial payments and converted to a completed
modification.

The program offers principal reductions to as low as 100 percent of current
value and is resulting in an average of about $160,000 in reduced principal
balance and 44 percent average reduction in monthly payments.

More than 4,200 additional borrowers have received complete forgiveness of a
total of $263 million in principal forbearance pre-dating the March 1
implementation of the settlement.

Second-lien extinguishments and modifications

Nearly $9.7 billion in assistance to second-lien holders has been offered
through home equity debt elimination and extinguishment of the lien, releasing
any claim by the bank to the mortgaged property. More than 141,000 borrowers
have received second-lien extinguishment offers providing average financial
relief of about $68,000.

About 2,200 additional loans have been modified through the Making Home
Affordable second-lien program, reducing the balances owed by a total of $158
million.

Interest rate reductions

With most of the eligible population in the pipeline by the end of 2012, Bank
of America is confident that goals for the interest rate reduction program
will be met in the first quarter of 2013.

Offers extended through the end of 2012 presented average rate reductions of 2
percent, leading to average payment savings of $234 each month for the life of
the loan.

Short sales

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

About 23,500 borrowers who completed short sales have received a total $162
million and enhanced relocation benefits.

In addition to the $11.8 billion in deficiencies waived on short sales
completed between March 1 and December 31, Bank of America has waived any
future claim for recourse on more than $1 billion in additional deficiencies
on about 18,600 short sales completed prior to the NMS implementation.

Servicing standards

Bank of America also reported to the monitor that it was in compliance with
all servicing standard metrics in force under the NMS in the fourth quarter.

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 approximately 53
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 approximately 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.

Visit the Bank of America newsroom for more Bank of America news.

                            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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