Monday October 6, 12:08 PM
Bank of America says to spend up to $8.4 bln on Countrywide
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WASHINGTON (AFP) - Bank of America (NYSE: IKJ - news) said Monday it was ready to spend up to 8.4 billion dollars to restructure the troubled mortgage loan portfolio of the recently-acquired mortgage lender Countrywide (LSE: CWD.L - news) .
The bank (TBHS - news) said in a statement the program was designed to help borrowers who financed their homes with high-risk subprime loans serviced by Countrywide.
Bank of America acquired Countrywide last July.
"We are confident that... 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 home ownership," Barbara Desoer, president of Bank of America's mortgage, home equity and insurance services, said in the statement.
Bank of America serves more than 59 million consumers and small businesses in the United States and has more than 6,100 retail banking offices in the country.
Countrywide's woes at the time of its purchase reflected the troubles of the overall US housing market and the big lender is particularly exposed to losses in the subprime mortgage market, which catered to borrowers with weak credit histories.
Last October, the company posted its first quarterly loss in 25 years amid surging mortgage defaults.
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