Bank of America has begun to feel the credit crunch particularly after their purchase of Countrywide, but following a settlement for Countrywide they have agreed to make loans more affordable for about 400,000 homeowners. Bank of America has agreed to drop rates as low as 2.5 % for some borrowers and forgive some amounts of debt. They will also suspend foreclosures while they take a look at who qualifies.

Another goal of Bank of America is to reduce payments so they are just one-third of borrowers income. Some experts are skeptical of the outcome, but many agree it is in the best interest of everyone for loan modifications to be carried out.