According to a recent article I read, Bank of America, has modified more than 64,000 home loans for borrowers between December and March after settling charges over predatory lending in an agreement with 42 states.

The modifications will save borrowers $823.5 million in principal and interest, according to a summary report provided to Bloomberg News today by bank spokesman Dan Frahm. BofA has offered to modify loans with lower interest rates for 100,300 borrowers, the report said. This is definitely great news for homeowners with Bank of America Mortgage, including myself!

Bank of America in July acquired Countrywide Financial Corp., formerly the largest U.S. home lender. Countrywide’s lending practices prompted investigations by attorneys general in California, Florida and other states, leading to an October settlement in which Bank of America agreed to modifications that could save 390,000 borrowers as much as $8.4 billion.

Important for anyone attempting to modify thier loan with Bank of America:  The modification program targets subprime loans typically made to customers with the weakest credit histories and adjustable-rate mortgages that enable borrowers to defer principal payments, typically called “pay-option ARMs.”

Bank of America owns 12 percent of the loans that may be modified, with investors holding the balance. Investors are suing Bank of America over who should pay for the modifications in a case pending in U.S. District Court for the Southern District of New York.