A letter drafted by the California Reinvestment Coalition and signed by 91 California community groups has been sent to Kenneth Lewis, Bank of America's (BoA) chief executive officer, asking him to declare a foreclosure moratorium and develop a plan to keep troubled borrowers in their homes.
According to the California Reinvestment Coalition, the community groups – many of whom serve homeowners threatened with foreclosure as a result of subprime loans – listed three specific requests:
- Initiate an immediate foreclosure moratorium on all mortgage loans in Bank of America's and Countrywide's portfolios, including those that are currently being serviced.
- Modify loans for borrowers in danger of losing their homes to a fixed conventional loan with an interest rate of no more than 6% for 30 years.
- Maintain Countrywide's headquarters in Calabasas and its loan servicing center in Simi Valley. These Countrywide employees are needed to modify and restructure loans, the groups state.
