Bank of America has the resources and the will to begin cleaning up the subprime mess that Countrywide has played such a large role in creating. We have nine months between now and the official merger date. This will be the most important period since the Great Depression for dealing with the millions of bad Countrywide loans that have pushed families to the brink of foreclosure. The number one priority during this critical period is fixing these bad loans and keeping people in their homes.
Over the past few years, by steering millions of people into bad loans, Countrywide has been the largest rogue mortgage lender in the country. According to Countrywide's own data, more than 80% of its exotic adjustable-rate loans were made to borrowers that do not meet current banking standards. Countrywide knew that these homeowners would not be able to make their monthly loan payments after dramatic payment increases became effective. Hopefully, Bank of America will not be surprised by the extent of the problems with Countrywide's home loans. Bank of America should be commended for taking the challenge of addressing these problems at a time when ordinary families most desperately need a fair shot at sustainable homeownership.
For more information: Kathleen Day at(202) 349-1871 or kathleen.day@responsiblelending.org; Sharon Reuss at (919) 313-8527 or sharon.reuss@responsiblelending.org; or Ginna Green at (510) 379-5513 or ginna.green@responsiblelending.org.