Charlotte, North Carolina-based Bank of America) outlined the company’s strategic plan for preventing foreclosures within its mortgage lending portfolio on Monday—a strategy that coincides with the banking platform’s recent decision to acquire subprime lender Countrywide Financial Corp.

Under the plan, BofA expects to move its national consumer mortgage headquarters to Calabasas, California—the home of Countrywide—and adjust or work out approximately $40 billion in mortgage loans by 2010. Bank of America says its plan has the potential to save approximately 265,000 borrowers from foreclosure.
“We will continue to work with distressed borrowers to match the customer’s repayment ability with the appropriate loss mitigation option, including loan modifications, forbearances, repayment plans, lower rates and principal reductions,” said Liam McGee, president of BofA’s global consumer and small business banking. “We will not assess new late charges for customers in foreclosure and we will waive certain other associated fees, when permitted.”
The banking giant also said that it will continue to allow borrowers to stay in their homes 60 days after the foreclosure proceedings go through and will provide borrowers who voluntarily depart within 30 days of the foreclosure proceeding with a $2,000 cash-for-keys.