Bank of American Inc. will close $3.5 billion in loans to consumers in a $8 billion program that will allow customers to get loans on new mortgages, the lender said Monday.
The announcement follows a series of announcements in recent weeks that highlighted a major turnaround in the nation’s banking sector.
BofA said the changes will help it provide consumers with better and more affordable mortgages, while also improving its business by increasing competition in the industry.
The bank said it is expanding its portfolio of low-cost mortgages by increasing the number of new borrowers and expanding its customer service teams to meet the needs of the nearly two-thirds of borrowers it serves.
The $3 billion in new loans will include $1.4 billion in consumer loans, as well as loans that are being extended to customers who have refinanced their mortgages.
The bank said its portfolio also includes loans to small businesses, including loans to homeowners and small-business owners.
The new loans, the bank said, will be made available to customers in the state of North Carolina, Ohio, South Carolina and Texas, and will be available for a short time in each of those states.
Boracay, which operates more than 20 retail outlets in North Carolina and Ohio, has been struggling to stem a wave of defaults on its loans.
The company has had to lay off more than 10,000 workers, cut its workforce by about 10 percent and has been selling off assets as it grapples with the crisis.
The company has about $4 billion of capital to cover the shortfall.