Bank of America, Countrywide Announce $35 Million Package to Aid Distressed Homeowners and Communities

Direct grants and investments part of companies’ efforts to preserve
               neighborhoods and help families stay in homes

    CHARLOTTE, N.C., May 1 /PRNewswire/ — Bank of America and Countrywide
Financial Corporation today provided additional details regarding the $35
million neighborhood preservation and foreclosure prevention package
announced last week in Chicago. The commitment includes foreclosure
prevention efforts by both financial institutions.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b )

    The package, which is comprised of both grants and low-cost loan/
investments in nonprofit organizations, addresses the nation’s ongoing
mortgage foreclosure crisis and will complement efforts undertaken by the
U.S. government and other housing agencies, such as the $180 million
allocation from U.S. Department of Housing and Urban Development (HUD) to
NeighborWorks(R) America to boost the capacity of both national and local
nonprofits engaged in foreclosure prevention and mitigation activities.

    “Foreclosures have devastating social and economic consequences on
families and communities,” said Andrew D. Plepler, president, Bank of
America Charitable Foundation. “Both Bank of America and Countrywide
recognize that we have a shared responsibility to strengthen our
neighborhoods by helping individuals and families keep their homes. We are
pleased to do our part to address this ongoing crisis.”

    The Bank of America neighborhood preservation and foreclosure
prevention package includes:

     – $10 million in direct grants from the Bank of America Charitable
       Foundation to enhance the capabilities of national and local nonprofit
       organizations focused on foreclosure prevention counseling and
       mitigation.  Estimates indicate at least 40,500 people will receive
       counseling or other support services as a result of these grants.
     – $15 million in program related investments (PRI), a long-term,
       repayable  loan/investment offered at below-market interest rates to
       help nonprofit organizations preserve affordable housing and rental
       units in deeply impacted cities by acquiring and redeploying foreclosed
       properties.
     – $5 million in unallocated grants to address future needs, including
       counseling and property disposition efforts.

    Countrywide, in conjunction with its community partners, has allocated
$5 million for neighborhood stabilization and foreclosure prevention
through 2008.

    Under the program, the Bank of America Charitable Foundation has
already allocated $10 million in direct grants. National grant recipients
will utilize funds to support their local affiliates in cities across the
U.S., as well as develop and expand programs to further assist their
constituents. The funding will be used to help these organizations conduct
outreach to distressed homeowners through the creation of hotlines,
foreclosure prevention and mitigation training for counselors, expanded
community outreach and staffing increases.

    National grant recipients include:
     – ACORN Housing Corporation (Chicago) – $2 million
     – Consumer Credit Counseling Service of Greater Atlanta (Atlanta) -
       $500,000
     – Housing Partnership Network (Boston) – $200,000
     – National Community Reinvestment Coalition (Washington, DC) – $500,000
     – National Foundation for Credit Counseling (Silver Spring, MD) -
       $250,000
     – Homeownership Preservation Foundation (Minneapolis) – $250,000
     – National Urban League (New York) – $300,000
     – NeighborWorks(R) America (Washington, DC) – $1 million

    More than $4 million in local grants have been allocated to nonprofit
organizations in states that have been disproportionately impacted by the
foreclosure crisis. Those states include Arizona, California, Florida,
Illinois, Nevada, New York and Texas.

    “Bank of America and Countrywide are taking a strong leadership role in
addressing this ongoing crisis, and I commend them for contributing to the
solution,” said Ken Wade, CEO, NeighborWorks(R) America. “Homeowners facing
foreclosure often have to turn to nonprofit organizations, like
NeighborWorks(R) and our partners, for assistance. I am pleased so many
groups will have additional resources to perform their critical work thanks
to the generous contributions of Bank of America and Countrywide.”

    Both Bank of America and Countrywide are founding members of HOPE NOW,
an alliance between counselors, mortgage market participants and mortgage
servicers to create a unified, coordinated plan to reach and help as many
homeowners as possible. Data from HOPE NOW indicates that from July 2007
through February 2008, mortgage servicers provided loan workouts that
enabled about 1.2 million individuals to retain their homes.

    Earlier this week, Bank of America made several announcements further
demonstrating the company’s commitment to support vibrant and healthy
communities. Beginning in 2009, Bank of America will embark on a new $1.5
trillion community development lending and investing goal over the next ten
years. The goal is the largest in U.S. history. Also beginning in 2009, the
company will begin a new ten-year, $2 billion corporate philanthropy goal,
continuing its tradition of being one of the most generous financial
institutions in the world.

    Additionally, the Office of the Comptroller of the Currency (OCC)
notified Bank of America last week that it had received a sixth-consecutive
‘outstanding’ rating during its most recent Community Reinvestment Act
(CRA) exam. This is the highest possible acknowledgement from the OCC, and
covered a 3-year assessment period between 2004 – 2006.

    Bank of America Corporate Philanthropy

    Building on a long-standing tradition of investing in the communities
it serves, Bank of America will embark in 2009 on a new, ten-year goal to
donate $2 billion to nonprofit organizations engaged in improving the
health and vitality of their neighborhoods. Funded by Bank of America, the
Bank of America Charitable Foundation gave more than $200 million in 2007,
making the bank the most generous financial institution in the world and
the second largest donor of all U.S. corporations in cash contributions.
Bank of America approaches giving through a national strategy called
“neighborhood excellence” under which it works with local leaders to
identify and meet the most pressing needs of individual communities.
Through Team Bank of America, bank associate volunteers contributed more
than 650,000 hours in 2007 to enhance the quality of life in their
communities nationwide. For more information about Bank of America
Corporate Philanthropy, please visit
http://www.bankofamerica.com/foundation.

    About Countrywide

    Founded in 1969, Countrywide Financial Corporation (NYSE: CFC) is a
diversified financial services provider. Through its family of companies,
Countrywide originates, purchases, securitizes, sells, and services
residential and commercial loans; provides loan closing services such as
credit reports, appraisals and flood determinations; offers banking
services which include depository and home loan products; conducts fixed
income securities underwriting and trading activities; provides property,
life and casualty insurance; and manages a captive mortgage reinsurance
company.

                         http://www.bankofamerica.com


Posted in Mortgage News | 7 Comments

7 Responses to “Bank of America, Countrywide Announce $35 Million Package to Aid Distressed Homeowners and Communities”

  1. Helena says:

    Okay so what are we supposed to do if we have a mortgage with Countrywide and are seeking this opportunity?

  2. I need some information on what I can do to lower my house payments and modify my sub prime morgage.

  3. sam says:

    a pretty small drop in the 55 gallon drum of problems they created!!!

  4. C. Mateos says:

    i have tried contacting Counrywide several times, because i was out of reserves (i had about 50k) and am about to default on my loan. I had been unemployed for 8 months in 2007. and I recently got hired fulltime in a permanent position, but making a lot less than my previous employer. Between my husband & I we are living now paycheck to paycheck & this is horrible.
    I have always paid on time and i am not able to make my monthly payment for May. I was requesting a loan modification, and the bank rep from the HOPE team (home retention dept), and they pretty much told me ‘tough luck’ until you are atleat 1 or 2 months late on your mortgage payment – we can’t help you.
    It seems crazy to me that I am trying to prevent a default and continue to pay Countrywide and they do not want to help me unless i owe them months…. What can be done about this. Help !any suggestions?

  5. Cynthia J. says:

    Please help us with these loans

  6. My name is Brandy Robinson and i live in Soddy Daisy TN. I am going through a divorce,and im a single mother with no child support.I need help with saving my home.About 2 months ago my intrest rate variabled and i cant keep paying this high payment.I just need a lower payment.

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