Bank of America to Curb Countrywide’s Subprime, Adjustable-Rate Mortgage Loans

Charlotte, N.C.–Bank of America Corp. will cease offering certain risky mortgage loans once its purchase of Countrywide Financial Corp. is complete, the Charlotte, N.C.-based bank said Tuesday.Bank of America hasn’t offered subprime mortgages since 2001; once it folds Countrywide into its business, it will no longer allow the lender to offer adjustable-rate mortgages that allow borrowers to pay less than the interest due, according to the Los Angeles Times.The bank also will not give out subprime mortgages, typically issued to borrowers with faulty credit. Bank of America also will “significantly curtail” mortgages given to borrowers without full income or asset documentation and other nontraditional mortgages.In January, Countrywide agreed to let Bank of America take over its operations for a $4 billion.