BoA Expecting Higher Losses on 2nds

Bank of America, the nation's largest second-lien lender, says it expects losses on its home equity portfolio to be higher than previous estimates. At a recent investors' conference, Liam McGee, president of the bank's global and small-business division, said losses on its second-lien (home equity) portfolio would be higher than an earlier estimate of 2.0%-2.5%. He cited ailing housing markets in California and Florida as being among the worst. According to the Alternative Products Quarterly Data Report, BoA was the largest second-lien lender in the fourth quarter, with originations of $18 billion. (Second-lien rankings for the first quarter will be ready shortly.) Speaking at the investors' conference, Mr. McGee also reported that the bank's purchase of Countrywide Financial Corp. is on track and is expected to close in the third quarter.