BoA Reduces LOC to Option One

Bank of America has extended the terms of its warehouse line to Option One Mortgage Corp., but reduced the facility by about half -- to just over $2 billion, according to a new public filing.H&R Block, the parent of Option One of Irvine, Calif., said in a filing with the Securities and Exchange Commission that it also amended a servicing and sale agreement with Wells Fargo Bank, but offered no details on what those changes entail. The BoA warehouse line has been extended to March 14, 2008, but is subject to several "performance triggers" tied to capital, net income, defaults, and related matters. H&R Block is trying to sell Option One and is supposed to make a public announcement regarding the sale process by the end of the week of March 25. According to the Quarterly Data Report, Option One ranks seventh among all subprime originators in the United States.