Bank of America to Modify Mortgages,

Bank of America to Modify Mortgages, Help Homeowners
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Bank of America Corp., seeking approval of its Countrywide Financial Corp. takeover, said it will modify at least $40 billion in troubled mortgage loans over the next two years to keep customers in their homes.

The move would help as many as 265,000 homeowners, Liam McGee, president of global consumer and small-business banking, said today in Los Angeles at a U.S. Federal Reserve hearing on the pending purchase.

``No one benefits from a foreclosed home,'' McGee said. ``It is bad business for banks.''

Bank of America, based in Charlotte, North Carolina, is trying to persuade regulators to approve the takeover, which would give it a role in one of every four U.S. home loans. Last week, the bank said it would curtail mortgages for people with the worst credit after Countrywide's loans helped fuel the subprime crisis.

Bank of America was unchanged at $38.30 at 1:44 p.m. in New York Stock Exchange composite trading today. Countrywide rose 7 cents to $5.91 and has declined 34 percent this year.

U.S. foreclosure filings jumped 57 percent and repossessions more than doubled in March from a year earlier, according to data vendor RealtyTrac Inc. A record 18.6 million U.S. homes stood empty in the first quarter, the U.S. Census Bureau said in a report today.
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