Tomahawk, WI 12/10/2013 (BasicsMedia) – Bank of America Corp (NYSE:BAC) is the second largest bank in the U.S. in asset base. The bank’s recovery from the financial crisis has been remarkable. Its cost-cutting and revenue growth efforts have so far paid off as can been seen in its financial position, lean branches, and workforce.

The only gorilla in the room for the bank is the string of lawsuits it is facing in connection to its involvement in risky mortgage deals. Bank of America Corp (NYSE:BAC) has had to pay heavily for its messes this year and more cases could still come in 2014. However, given that the bank is cooperating well with the regulators, it is expected to enjoy some reprieve and also get out of the lawsuits faster.

In the meantime, BAC is doing all that it can to return value to investors. The bank is leading other major U.S. lenders in attracting customers with lower requirements for financing. When mortgage rates jumped from 3.34 percent one year ago to now 4.46 percent, a lot of customers have been put off, and this started hurting interest income for the lenders. In response, BAC is among the lenders that have loosened lending requirements. In October, the bank revised its own down payment requirement for nonconforming loans from 20 percent to 15 percent. Currently the rates are down to 5 percent.

This strategy has its risks obviously, but it is the only way that Bank of America Corp (NYSE:BAC) and peers can keep mortgage revenue coming.

BAC peers in it

Bank of America Corp (NYSE:BAC) is not alone in adjusting jumbo loans down payment requirement sto 5 percent. Wells Fargo & Co (NYSE:WFC) and JPMorgan Chase & Co. (NYSE:JPM) have also brought theirs to this level. This means that now customers asking for nonconforming loans, or what is known in Wall Street as jumbo loan, require less than $1 million for securing financing from the three big lenders.

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