In a show of customer communications, Bank of America Home Loans is set to provide customers with a one-page summary of key terms on their mortgage modifications. The Clarity Commitment will be offered with modifications in the coming weeks, and follows a card holder commitment launched last month along the same lines. During the financial crisis, banks were often cited for allowing unqualified buyers to take out loans and mortgages - including those that couldn't afford one or understand what they were getting into.
BoA says the summary is in response to “consumers seeking simplified explanations of credit products,” and is an extension of the Clarity Commitment launched in April for customers taking out first mortgages.
The loan modifications summary includes information on interest rates, principal balance, and escrow payments.
From a Bank of America statement:
"Our Clarity Commitment for new mortgages has been very well received as a demonstration of our dedication to responsible lending and the creation of successful homeowners," said Rebecca Mairone, national servicing executive for Bank of America Home Loans. "Modified mortgages may have considerably different terms than the original contract. As our customers transition to their new affordable payment, it is important that they have this simple and concise explanation of the terms of their modified loan."