Bank of America - Responsible Business Practices

How We Put Responsibility into Practice

Every day, millions of individuals, families and businesses partner with us, with the expectation that we will treat them fairly, communicate forthrightly and make clear, honest and ethical decisions to help meet their financial needs. That expectation is at the heart of what we do, and is crucial to the value we provide.

Our Code of Ethics guides us in all that we do. The Code, which is grounded in our core values, outlines the business practices and policies, as well as professional and personal conduct, that all employees are expected to adopt and uphold.

The Code influences how we do business as we continue to build a stronger, more streamlined and customer-focused company. The Code covers a range of issues from human rights and anti-corruption to our risk framework and workplace safety policy. Learn more about our Code of Ethics.

Operating responsibly is vital to all areas of our business. In particular, we believe that our responsible business practices will have a direct, positive impact on two areas critical to our growth:

Our strength and stability as a global financial institution

Our capacity to meet the financial needs of our customers and clients in all phases of their lives

Learn more about our recent efforts in these two areas:

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Strengthening Our Long Term Stability

The strength and stability of the financial sector is critical to overall economic health. Through the efforts described below, we have become more financially stable than before the financial crisis.

We have focused on several activities to help us become a stronger and more stable financial company, including strengthening our foundation—the balance sheet. To build a “fortress balance sheet” we continue to work to improve our liquidity, credit reserve positions, asset quality and overall capital levels. To reinforce our business foundation, we reviewed our internal governance processes and introduced a new risk management framework across our businesses. The result is that we are a more streamlined company, sharply focused on deepening client relationships through our core businesses and operating with less complexity, more transparency and lower risk.

Read more about our long-term financial stability in the 2011 Annual Report.

Assisting Customers

We work to build long-lasting relationships with our customers and clients. As a customer-driven company, we seek to serve their financial needs in ways that are transparent, seamless and efficient. We offer a range of accessible banking technologies designed to make banking easier for people with disabilities. We safeguard our customer information with comprehensive privacy and security protection. And we continue to focus on innovation in our industry-leading online and Mobile Banking¹ services. All of these efforts help us maintain transparency and communicate clearly—to be a company that is easy to do business with.

How We Support Homeownership

Supporting the home buying and refinancing needs of our customers is a key part of how we deliver the full benefits of the bank. In addition to purchase mortgage financing, we provide customers the ability to refinance their mortgage, which in many cases provides lower interest rates and helps to lower their monthly mortgage payments. We are fully committed to providing our customers with the benefits of refinancing through our continued execution of the U.S. government’s Home Affordable Refinance Program (HARP).

How We Help Customers Who Need Mortgage Assistance

Our goal is to help customers remain in their home or otherwise avoid foreclosure whenever possible. Since January 2008 we have helped prevent more than 1.3 million foreclosures by providing customers loan modifications, short sales and deeds in lieu of foreclosure.

For customers in need of mortgage assistance, we provide a single point of contact to help them understand the available options and identify an appropriate solution. Currently more than 800,000 customers are assigned to a single point of contact. For those customers wishing to speak to a Bank of America representative face-to-face, we participate in hundreds of homeowner events and mobile tours annually and have a nationwide network of 50 Customer Assistance Centers.

How We Help Customers Stay in Their Homes

We have an array of programs with tools designed to make mortgage payments more affordable for our customers, including reduction in interest rate, forbearance of mortgage principal and interest, and mortgage principal reduction. To date, we have completed more than 1 million modifications for our customers, including through the government’s Home Affordable Mortgage Program (HAMP) and our own proprietary programs.

We are an industry leader in developing and participating in specialized programs for borrowers in need of assistance, including programs for military servicemembers, as well as unemployment, reinstatement and principal-reduction programs through the Hardest Hit Fund. In addition, under terms of the global settlement between mortgage servicers and state attorneys general, Department of Justice and other federal agencies, we are developing additional consumer relief programs, including principal reduction offers, and interest rate reduction and second lien modification programs.

Find out more about these homeowner programs at: Bank of America Home Loan Assistance.

How We Offer Other Alternatives to Foreclosure

In cases where a customer is unable to qualify for a loan modification or is no longer interested in remaining in their home, our goal is to help them transition from their home without going through foreclosure. We offer a variety of short sale and deed-in-lieu of foreclosure programs that have helped hundreds of thousands of customers to avoid foreclosure over the past several years. In many cases, these programs provide funds to help with relocation to new housing, including a short sale relocation assistance program that provides from $2,500 to $30,000 to qualifying customers. We are also piloting a Mortgage to Lease™ program, which allows a limited number of eligible customers facing foreclosure an opportunity to resolve their delinquency through a deed-in-lieu of foreclosure, but remain in their homes as tenants. In partnership with the United Way, we’ve developed a Home Transition Guide that provides customers information about all of our foreclosure alternatives and access to community resources.

Find out more about these homeowner programs at: Bank of America Home Loan Assistance.

How We Help Stabilize Communities

We recognize the impact that the housing market downturn has had on our communities and are committed to supporting the recovery of our neighborhoods. Through our support of the Neighborhood Stabilization Program (NSP), we provide nonprofit groups and community organizations the ability to purchase bank-owned properties at a discounted rate so they can be provided to new homeowners. Over the past several years, we’ve donated nearly 300 properties in more than 25 states, with a focus on military, first responders/police officers and disaster relief. And, through innovative partnerships with cities, including Cleveland, Chicago, Detroit and Kansas City, we assist with the demolition of deteriorating structures and the donation of low-value properties for redevelopment, open space and other uses that benefit the community.

How We Support Military Servicemembers

We appreciate the tremendous sacrifices made by our military servicemembers, and work hard to ensure they receive high-quality service that meets their unique needs, especially during times of deployment. We have taken steps to enhance our programs and processes and to go above and beyond the Servicemembers Civil Relief Act (SCRA) requirements in supporting servicemembers and their families. Our dedicated service team is available 24/7, toll-free and we offer a 4% interest rate on mortgages—2% below the SCRA requirement—applicable for the duration of the borrower’s active duty and for 12 months post-release, and a loan modification program for borrowers on active duty and for nine months post-release. These features are available on loans the bank owns and services.

¹You must first enroll in Online Banking, and set up Transfers and Bill Pay. Wireless carrier fees may apply.