BofA Launches Flat Closing Fee Loan, 'Clarity' Effort

Bank of America is rolling out new tools and products aimed at providing transparency and responsible lending to consumers, among them a flat closing fee loan that has no application fee, and a one-page loan summary for customers taking out retail purchase and refinance loans. The latter, the Clarity Commitment, spells out the key aspects of loan terms — the monthly payment, the date it's due, the rate, what the rate and monthly payment could reset to, if it is an adjustable rate mortgage and the closing cost. BoA also said it was introducing a new interactive Home Loan Guide website as part of the rollout, done as part of its Bank of America Home Loans rebranding for mortgage operations that now include its home equity business and the former Countrywide Home Loans. Bank of America said it extended more than $85 billion in mortgage credit in the first quarter of 2009, helping more than 382,000 customers purchase a home or save money on the one they already own. Seventy-five percent of first quarter originations were for refinance. BofA is bringing two companies together when interest rates are at an all-time low and the economy is in a recession. The company has added 3,000 positions and is in the process of adding 1,000 more to its fulfillment to keep pace with the demand on the refi and purchase side.