[News] : Bank of America launches no-fee mortgages

Bank of America launches no-fee mortgages
The company will eliminate a number of fees and won't charge for private mortgage insurance.

NEW YORK (Reuters)
Bank of America said Monday that it is offering no-fee mortgages nationwide for Americans buying homes.

The second-largest U.S. bank said it won't charge for applications, appraisals, loan originations, title insurance and flood certifications. It also won't charge for private mortgage insurance - often required for borrowers who put less than 20 percent down.

The program does not cover refinancings. Borrowers would still be responsible for transfer taxes, recording fees, their own title insurance and legal fees, among other charges.

Charlotte, North Carolina-based Bank of America hopes its No Fee Mortgage PLUS program will add customers amid the current U.S. housing slowdown. It said it launched the program on April 23 without publicly announcing it and on that day generated a record number of applications to buy homes.

Mortgage rates hold steady
"We've found that when a customer has a mortgage with the bank, he typically buys five other products, so it's a great way to build a relationship," said Floyd Robinson, president of Bank of America's home loan business, in an interview.

Robinson said rates will be "competitive," though not necessarily the lowest. "We certainly think they'll be in the top half of competitiveness in every market we're in," he said.
The program includes a guarantee that loans will close within 25 days, unless customers need more time, or customers will collect the equivalent of their first mortgage payments, less taxes and insurance. Bank of America will also pay $250 to people who obtain mortgage approvals but close with other lenders.

In 2006, Bank of America made $167.5 billion of home loans, ranking sixth nationally, according to National Mortgage News.

Last October, the bank began to roll out a program allowing investors to make up to 30 free online stock trades a month when they deposit at least $25,000 with the bank.

Bank of America (Charts, Fortune 500) shares edged slightly higher in trading on the New York Stock Exchange Monday. The company competes with banks such as Citigroup (down $0.21 to $53.88, Charts, Fortune 500) and JPMorgan Chase (up $0.10 to $52.73, Charts, Fortune 500).


refference : http://money.cnn.com/2007/05/07/news/companies/bofa_mortgages.reut/index.htm?postversion=2007050718