B of A OKs $3 Billion for Affordable Mortgages

Bank of America has promised to fund $3 billion in affordable mortgage loans--including about $1 billion in California--through a special home-buying program over the next five years. The mortgage program, to be implemented by nonprofit housing group Neighborhood Assistance Corp. of America, will require no down payment or closing costs, and offers a fixed interest rate, currently at 7.5%, officials said. The NACA’s Los Angeles office, which also covers parts of Orange and San Bernardino counties, expects to handle about $300 million in loans a year, according to NACA Chief Executive Bruce Marks, who called Bank of America’s commitment “unprecedented.” Bank representatives said the program is part of its $350-billion community development pledge. In the Los Angeles region, the maximum loan amount under the program is $208,800 for a single-family home. Household income for a family of four may not exceed $41,050, except in designated areas of Los Angeles County. Participants must also pay $50 a month into a fund used to provide financial assistance to prevent foreclosure.