"Mortgages are one of the three main cornerstone consumer financial products along with deposits and credit cards," said Bank of America Chairman and Chief Executive Officer Kenneth D. Lewis. "This purchase significantly increases Bank of America's market share in consumer real estate, and as our companies combine, we believe Bank of America will benefit from excellent systems and a broad distribution network that will offer more ways to meet our customers' credit needs."

Bank of America plans to offer first mortgages that adhere to underwriting guidelines set forth by government enterprises such as Fannie Mae and Freddie Mac. The bank also plans to offer FHA and VA loans that are government backed and are designed for low and moderated income borrowers.

Bank of America will continue to uphold its high standards of mortgage lending by not offering sub-prime mortgage loans. The bank will also discontinue option arm loans and curtail mortgage loans that do not require any income verification.

"Now we begin to combine the two companies and prepare to introduce our new name and way of operating," said Barbara Desoer, president of the combined mortgage, home equity and insurance businesses. "We have the opportunity to renew America's confidence in homeownership with unmatched capabilities to deliver the products homebuyers need and understand and give customers a simple process and service experience they've come to expect."

The combined national mortgage division will be based in Calabasas, California and will begin originating mortgage loans and home equity lines of credit in mid 2009.

For the latest Mortgage News visit Future Planning Financial at www.fpf-direct.com.