CHARLOTTE, N.C. -- Bank of America says it will alter its mortgage product menu once it completes its acquisition of mortgage lender Countrywide Financial.
Bank of America (BAC, Fortune 500) says it will offer traditional mortgages that fit government-sponsored enterprise guidelines. It will also offer interest-only fixed-rate and adjustable-rate mortgages that have long reset periods to lessen the likelihood of short-term payment spikes.
The Charlotte, N.C.-based bank will not originate subprime mortgages or loans that allow customers to make payments for less than the monthly interest due.
It will also greatly reduce offerings of other nontraditional loans, like those that allow for little documentation.
The Bank of America (BAC, Fortune 500) acquisition is expected to close in the third quarter.
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