Bank of America completed its acquisition of subprime lender Countrywide Financial Corp. on Tuesday—an action that makes BofA the nation’s largest mortgage originator and servicer.
The landmark merger has been solidified with a series of ground rules— namely BofA’s assertion that while it plans to offer an assortment of products, the company remains committed to the platform’s current policy of not originating subprime mortgages.
“Mortgages are one of the three main cornerstone consumer financial products along with deposits and credit cards,” said Bank of America Chairman and Chief Executive Officer Kenneth Lewis. “This purchase significantly increases Bank of America’s market share in consumer real estate, and as our companies combine, we believe Bank of America will benefit from excellent systems and a broad distribution network that will offer more ways to meet our customers’ credit needs.”

Barbara Desoer, president of combined mortgage, added that BofA and Countrywide can now move forward with branding the combined platforms under the BofA name—a process that will include a commitment to investing $1.5 trillion in community redevelopment over the next decade and a dedication to working out $40 billion in troubled mortgages over the course of the next two years.
Below is a list of the first-lien products that BofA plans to offer:
conforming loans underwritten to certain guidelines of government-sponsored enterprises and the government
FHA and VA loans and other loans designed for low and moderate-income borrowers; non-conforming loans with terms expected to produce no greater risk of default than conforming loans
Interest-only fixed-rate and adjustable-rate mortgages that are subject to a 10-year minimum interest-only period
Fixed-period ARMs that provide borrowers low initial rates with the security of fixed payments, subject to protections against steep increases in payment amounts