Bank Of America Announces Lending & Investing Initiative To Revitalize US Economy

Lending & Investing Initiative represents a comprehensive plan to track and report on Bank of America's business activity in 10 areas key to reviving the nation's economy. The initiative follows up on a pledge by Bank of America Chairman and

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Lending & Investing Initiative represents a comprehensive plan to track and report on Bank of America’s business activity in 10 areas key to reviving the nation’s economy.

The initiative follows up on a pledge by Bank of America Chairman and Chief Executive Officer Kenneth D. Lewis to provide greater transparency into the company’s lending and investing efforts across the enterprise.

Lewis will receive regular reports on economic trends and implications for each of the segments housed under the Lending & Investing Initiative. The company will then provide quarterly, aggregated updates on activity in each area to the public.

The Bank of America Lending & Investing Initiative includes:- Consumer lending: Bank of America serves one out of every two households in the United States and is uniquely positioned to work with consumers to address their borrowing needs. By way of example, Bank of America lent $45 billion through its mortgage unit ($11.3 billion of that to low- and moderate-income borrowers), helping more than 200,000 Americans purchase a home or save money on the home they already own in the fourth quarter alone.

– Loss mitigation: Bank of America has committed to assist as many as 630,000 customers to help them stay in their homes, representing more than $100 billion in mortgage financing. In 2008, the company modified approximately 230,000 home loans – representing more than $44 billion in mortgage financing – to avoid foreclosures. Bank of America also modified nearly 700,000 credit card loans for borrowers experiencing financial hardship last year.

– Real Estate Owned Properties: Communities across the United States, particularly in low-to-moderate income areas, are suffering from growing numbers of abandoned bank-owned or bank-serviced properties. Bank of America is working with community stakeholders and city and state grantees that received funding under the Neighborhood Stabilization Program administered by the U.S. Department of Housing and Urban Development to repurpose these properties responsibly, which helps fight declining property values and neighborhood blight.

– Small business lending: Small businesses remain a critical driver of the U.S. economy and Bank of America will continue to serve this important sector. In 2008, Bank of America extended almost $4.8 billion in new credit to nearly 250,000 small business customers (defined as businesses with less than $2.5 million in revenues and less than $250,000 in credit exposure). During the fourth quarter alone, nearly $1 billion in new credit was extended to more than 47,000 new small business customers.

– Commercial lending: As the predominant middle-market bank in the United States, serving companies with annual revenues between $2.5 million and $2 billion as well as not-for-profit organizations and governments, Bank of America is well situated to deliver financial services to this critical segment of the economy. For example, Bank of America extended about $49 billion in commercial non-real estate lending credit and nearly $7 billion in real estate lending during the fourth quarter.

– Green building: One of the many ways Bank of America works to address global climate change and build new business opportunities is by financing the construction and retrofitting of commercial properties to meet or exceed green-certified building standards. For example, Bank of America delivered nearly $2 billion in “green” commercial real estate debt and equity transactions through the end of October 2008.

– Community Development Financial Institutions (CDFIs): CDFIs play an important role in providing credit to families, small businesses, multi- cultural organizations, community facilities and nonprofits serving low-to- moderate income communities that might not otherwise qualify under more traditional credit criteria. By way of example, Bank of America and Merrill Lynch delivered more than $450 million in loans and investments to CDFIs during 2008.

– Socially Responsible Private Equity: Bank of America routinely facilitates the flow of capital from institutional investors to underserved small businesses, such as those that are owned and managed by women or ethnic minorities; those located in low- and moderate-income areas; those that are located in underserved urban or rural markets; and those that provide services to underserved U.S. populations. For instance, as of 2008, Bank of America managed and advised on more than $677 million in capital to small businesses in this category that may not have otherwise been able to gain access to these funds.

– Nonprofit support: Nonprofit organizations are critical to the vitality of neighborhoods across the United States and are key to the country’s economic recovery. These organizations address the most pressing needs in the communities they serve and Bank of America is supporting their efforts through lending and philanthropy. For example, the Bank of America Charitable Foundation this year initiated a 10-year, $2 billion philanthropic giving goal and extended $200 million in grants in 2008.

– Mortgage-backed securities: The secondary market created through mortgage-backed securities provides liquidity in the housing market, enabling lenders to provide credit to homebuyers. In the fourth quarter, Bank of America had net purchases of $20 billion in mortgage-backed securities.

“These are extraordinarily difficult economic times,” says Lewis. “As America’s largest bank, Bank of America must play a leading role in providing the capital and liquidity that will help revitalize the U.S. economy. That’s why we’re pulling together our lending and investing initiatives under this umbrella to provide greater clarity into the support we’re providing to families, businesses and communities across the country. All 10 of these areas are important to the future economic growth of our nation and our company.”

L.D.

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