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Tell me it‘s not TRUE !!!
One of the least convincing lines in any breakup is: "It's not you — it's me."
But that's essentially what "/topic/economy-business-finance/bank-of-america-corp.-ORCRP001609.topic" is telling potentially millions of former "/topic/economy-business-finance/countrywide-financial-corp.-ORCRP004030.topic" customers as it notifies them that their home equity lines of credit won't be renewed as they approach the five-year mark.
"This decision was not based on your credit record or your performance in paying your home equity line of credit and will not adversely affect your credit score," Bank of America says in its non-renewal notices.
"This decision was based solely on current conditions in the financial markets."
That's a fine how-do-you-do. You hold up your end of the deal and remain a customer in good standing, never missing a payment, never demonstrating greater risk. But your bank nonetheless says it doesn't want your business any more.
And all because of "conditions in the financial markets," which by virtually all accounts are improving as the recession wanes, and which allowed Bank of America last month to report $3.2 billion in quarterly profit.
"With each day that passes, the 2010 story appears to be one of continuing credit recovery, and our results reflect a gradually improving economy," the bank's CEO, Brian Moynihan, said in a statement after the upbeat earnings were announced.
But that's not the message "/topic/us/california/los-angeles-county/los-angeles/west-hollywood-PLGEO1001001023810400.topic", Calif., resident Michelle Mindlin, 55, received when Bank of America informed her that her home equity borrowing was being cut off because of those pesky financial market conditions.
"What they're saying is that they feel insecure about things for some reason, so suddenly I'm a greater financial risk," she told me. "That's absurd."
Mindlin and her partner, Denise McCanles, purchased a condo for $277,500 in 2001. Four years later, they took out a $105,500 line of credit with their mortgage lender, Countrywide. They currently owe about $43,000 on the credit line.
"We wanted to do some renovating," Mindlin said. "We mostly wanted a safety net."
Bank of America purchased Countrywide in 2008. At the time, it said Countrywide had "a servicing portfolio of about $1.5 trillion with 9 million loans."
Mindlin said she and McCanles are both working only part-time at the moment, which does make them a greater credit risk. But that hasn't affected their ability to meet their financial obligations. Mindlin said she and McCanles have never missed a mortgage payment and never missed an interest payment on their credit line.
"We feel pretty kicked-when-we're-down by Bank of America," Mindlin said. "We just don't understand why they're doing this."
Jumana Bauwens, a Bank of America spokeswoman, said customers are being given two months' notice that their credit lines are being shut down, and that "customers may continue to make interest-only payments on the amount outstanding for the next five years before the loans begin to amortize."
She added, via e-mail: "Bank of America Home Loans has made the business decision due to the current condition of the home equity financial markets to end the draw period of Countrywide-originated home equity lines of credit at the five-year mark.
"The contract given to customers at origination provides the lender with the option to non-renew at the end of the five-year period."
Bank of America says it has the right to not renew home equity credit lines after five years. And that's what it's doing.
Nobody begrudges Bank of America or any other bank the right to act in its own interest. And if the bank is attempting to lower its risk exposure at a time of regulatory flux, which seems to be the case, it's entitled to do so.
But at least have the courage to tell customers what's really happening.
One of the least convincing lines in any breakup is: "It's not you — it's me."
But that's essentially what "/topic/economy-business-finance/bank-of-america-corp.-ORCRP001609.topic" is telling potentially millions of former "/topic/economy-business-finance/countrywide-financial-corp.-ORCRP004030.topic" customers as it notifies them that their home equity lines of credit won't be renewed as they approach the five-year mark.
"This decision was not based on your credit record or your performance in paying your home equity line of credit and will not adversely affect your credit score," Bank of America says in its non-renewal notices.
"This decision was based solely on current conditions in the financial markets."
That's a fine how-do-you-do. You hold up your end of the deal and remain a customer in good standing, never missing a payment, never demonstrating greater risk. But your bank nonetheless says it doesn't want your business any more.
And all because of "conditions in the financial markets," which by virtually all accounts are improving as the recession wanes, and which allowed Bank of America last month to report $3.2 billion in quarterly profit.
"With each day that passes, the 2010 story appears to be one of continuing credit recovery, and our results reflect a gradually improving economy," the bank's CEO, Brian Moynihan, said in a statement after the upbeat earnings were announced.
But that's not the message "/topic/us/california/los-angeles-county/los-angeles/west-hollywood-PLGEO1001001023810400.topic", Calif., resident Michelle Mindlin, 55, received when Bank of America informed her that her home equity borrowing was being cut off because of those pesky financial market conditions.
"What they're saying is that they feel insecure about things for some reason, so suddenly I'm a greater financial risk," she told me. "That's absurd."
Mindlin and her partner, Denise McCanles, purchased a condo for $277,500 in 2001. Four years later, they took out a $105,500 line of credit with their mortgage lender, Countrywide. They currently owe about $43,000 on the credit line.
"We wanted to do some renovating," Mindlin said. "We mostly wanted a safety net."
Bank of America purchased Countrywide in 2008. At the time, it said Countrywide had "a servicing portfolio of about $1.5 trillion with 9 million loans."
Mindlin said she and McCanles are both working only part-time at the moment, which does make them a greater credit risk. But that hasn't affected their ability to meet their financial obligations. Mindlin said she and McCanles have never missed a mortgage payment and never missed an interest payment on their credit line.
"We feel pretty kicked-when-we're-down by Bank of America," Mindlin said. "We just don't understand why they're doing this."
Jumana Bauwens, a Bank of America spokeswoman, said customers are being given two months' notice that their credit lines are being shut down, and that "customers may continue to make interest-only payments on the amount outstanding for the next five years before the loans begin to amortize."
She added, via e-mail: "Bank of America Home Loans has made the business decision due to the current condition of the home equity financial markets to end the draw period of Countrywide-originated home equity lines of credit at the five-year mark.
"The contract given to customers at origination provides the lender with the option to non-renew at the end of the five-year period."
Bank of America says it has the right to not renew home equity credit lines after five years. And that's what it's doing.
Nobody begrudges Bank of America or any other bank the right to act in its own interest. And if the bank is attempting to lower its risk exposure at a time of regulatory flux, which seems to be the case, it's entitled to do so.
But at least have the courage to tell customers what's really happening.
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