BoA Issues 'Clarity' Statements on HELOCs

Bank of America said is now giving its home equity borrowers the same "Clarity Commitment" summary it gives to its first lien customers. The document was introduced last April as a one-page summary of loan terms that was written in plain language. Now, the company will be giving a similar document for all stand-alone home equity lines of credit and any home equity loan whose term is longer than 36 months. The borrower will receive a copy at the point of sale, as a redisclosure in the event of a loan product change and with the closing package. However, consumers who apply through the company's website will get their copy only in their closing package. Reverse mortgage customers with closed-end, fixed rate, full draw loans already receive a copy of this document.