Neighborhood Champions® Protected Mortgage®
Program Fact Sheet
Overview
The Neighborhood Champions® Protected Mortgage® is a nationwide program designed for teachers,
police officers, firefighters and medical workers. Launched as an enhancement of Bank of America’s
existing Neighborhood Champions mortgage program, which helps those who serve and protect our
communities every day overcome barriers and realize the dream of home ownership, the program now
includes an insurance benefit that provides a full or partial payoff of the mortgage loan in the event of a
covered accidental death, paralysis or dismemberment, with premiums paid by Bank of America.
The inspiration for inclusion of this insurance benefit came from Adam Pierce, a Deputy Sheriff and Bank
of America mortgage customer who was shot in the line of duty and subsequently paralyzed.
Customer Benefits
Protected - The Neighborhood Champions Protected Mortgage program includes an Accidental Death
and Dismemberment insurance policy for covered accidental loss of life, limb, sight or hearing. All
Neighborhood Champions Protected Mortgage loans, regardless of size, are eligible for insurance up to
the policy maximum of $300,000. Insurance benefits are provided for the first two listed co-borrowers and
include full or partial payoff of the loan depending on the type of loss and the loan balance. The loan
payoff will be based on the loan balance or $300,000, whichever is less. It also includes COBRA
extension of up to $2,500 and Adaptive Home and Vehicle coverage of up to $3,000. This coverage is
provided by Minnesota Life Insurance Company and in New York by Securian Life Insurance Company,
an affiliate of Minnesota Life Insurance Company.
Affordable – Neighborhood Champions Protected Mortgage enables buyers to purchase a home with a
low down payment, making home ownership more affordable to those with limited savings and/or assets
at their disposal. Once any applicable contributions are met from the borrower’s own funds, remaining
down payment and closing costs may come from gifts or other sources. Homebuyer education is required
only for two-unit properties.
Flexible – The Neighborhood Champions Protected Mortgage features flexible credit guidelines for
homebuyers with limited or no traditional credit histories and/or a wide range of credit scores. The
program also allows consideration of undocumented income.
Available – Neighborhood Champions Protected Mortgage is available nationwide to homebuyers, where
at least one buyer is employed in one of the following professions:
• Full-time educators or employees at the primary, secondary or college/university education
level as well as part-time teachers
• Full-time employees of a police or other law enforcement profession
• Full-time firefighters or employees of fire department or related professions
• Full-time medical professionals including, but not limited to, nurses, nursing assistants,
medical technicians, dental assistants, pharmacy assistants or employees of a hospital, nursing facility or
doctor’s office
Enhanced – The existing 8,000 customers who obtained mortgage loans through predecessor Bank of
America programs will automatically receive the additional insurance benefit.
The Need
Peace of Mind – According to the U.S. Fire Administration, approximately 100 firefighters are killed in the
U.S. each year while on duty and tens of thousands more are injured. Similarly, on average 165 law
enforcement officers are killed each year and more than 56,000 are assaulted, resulting in more than
16,000 injuries, as reported by the National Law Enforcement Officers Memorial Fund (NLEOMF). In the
first six months of 2007, the number of law enforcement officers killed in the U.S. rose 44% percent,
according to the NLEOMF and Concerns of Police Survivors (COPS).
Affordability -- On average, people in these occupations working in central cities have less than a one-
in-three chance of finding a home they can afford and just a three-in-ten chance in the surrounding
suburbs, according to a June 2003 study, “Homeownership for Heroes” conducted by the National
Association of Home Builders for the Homeownership Alliance. The Neighborhood Champions Protected
Mortgage has been expanded to be more attractive to all applicants that meet the occupational
requirements, including those in high cost areas.
Qualifying Income -- The median incomes earned by individuals in these occupations – including
elementary school teachers, police officers and licensed practical nurses – is below what is needed to
qualify for a median-priced home in the U.S., $248,000, according to a recent study by the National
Housing Conference (NHC).
Down Payments – Nationally, and in most metropolitan areas surveyed, average wage teachers, nurses,
police officers and firefighters lack sufficient income to purchase a median-priced home, even with a 10%
down payment, according to the April 2004 Fannie Mae Foundation report, “Homeownership Affordability
in Urban America: Past and Future.” The report also finds even as a repeat buyer with a 20% down
payment, an average-wage police officer or firefighter faces affordability problems.
Investment in our Communities – In a survey Bank of America conducted last year, 6 in 10 police
officers, fire fighters, teachers and nurses say their ability to own a home influences their decision to
remain in their profession and to keep living and working in the community they serve. Our ability to help
these heroes own homes contributes to their quality of life and starts them down a path of building wealth
and enables communities to attract and retain the best and brightest of these essential professionals.
Product Details
Loan Types – Neighborhood Champions Protected Mortgage loans are available for purchase or
refinance with fixed-rate fully amortized and adjustable rate mortgage (ARM) product options.
Maximum Loan Amount – Neighborhood Champions Protected Mortgage loans have conforming limits
in all states and Washington, D.C. The enhanced program has increased loan limits in eligible high cost
areas: (one-unit up to $650,000; two-unit up to $831,500) to make homeownership more attainable for
Neighborhood Champions.
Insurance Benefit – Neighborhood Champions Protected Mortgage loans automatically include
Accidental Death and Dismemberment Insurance, with premiums paid by Bank of America. Premiums
paid by Bank of America may be taxable; customers should consult with their tax advisor. Customers may
opt out of this automatic coverage by contacting the bank at 1-800-285-6000. However, opting out will not
impact the loan pricing.
Property/Loan-to-Value – Financing up to 97% can be used to purchase or refinance one-unit
properties, condominiums, and planned unit developments in all states, and cooperatives in limited
market areas. Financing up to 95% available for 2-unit properties.
Credit – Borrowers without a traditional credit history may need only a favorable 12-month payment
history that includes rent and at least three other monthly bills to qualify.
Home Equity – Additionally, teachers, fire fighters, police officers, medical workers and related
occupations are also eligible to receive discounted pricing on a Bank of America home equity line of credit
or home equity loan. Customers are instructed to apply for this new home equity program by calling
LoanLine at 1.888.870.9459.
Getting Started
Homebuyers in the designated occupations may apply for mortgage financing through the Neighborhood
Champions Protected Mortgage Program, receive guidance about the process of financing a home or
learn more about this exclusive program by:
• Contacting a national Bank of America mortgage loan officer at 1.866.823.5446 or locate a
local mortgage loan officer by calling 1.800.344.9403
• Visiting our Web page, www.bankofamerica.com/loansandhomes
• Contacting a mortgage broker and ask for the Neighborhood Champions Protected Mortgage
Program provided only by Bank of America
The maximum insurance amount for Accidental Death, Accidental Dismemberment and total and permanent paralysis coverage
shall be equal to the balance of the loan, subject to a loan maximum of $300,000. All first mortgage loans in the Neighborhood
Champions Protected Mortgage program, regardless of size, are eligible for insurance up to the policy maximum of $300,000.
Should a covered borrower suffer a covered accidental loss of life, limb, sight, or hearing, these insurance benefits are designed to
provide a full or partial payoff of the loan depending on the type of loss and the loan balance. Certain exclusions, conditions and
limitations apply. Depending on the type of loss, the insurance may not payoff the entire balance of the loan, and the loan payoff will
be based on the loan balance or $300,000, whichever is less. It also includes COBRA Extension of up to $2,500 and Adaptive
Home and Vehicle of up to $3,000. Balance includes the principal amount of the outstanding loan account plus interest as of the
date of loss, excluding items such as servicing fees, late charges, real estate taxes and negative escrow balances.
The benefits are for losses due to covered accidental events. Benefits reduce at age 70 and terminate at age 75. The insurance
policy may be terminated by the insurance company or by Bank of America and ends on the date the loan account is paid in full.
Bank of America reserves the right to transfer the program to another insurance company, change the terms of the policy, to replace
the insurance policy with a similar product, or any combination thereof. Certain exclusions, conditions and limitations apply. The
Certificate of Insurance will include the complete terms and conditions of the policy.
Coverage is provided for the first two listed co-borrowers and is provided by Minnesota Life Insurance Company. In New York,
insurance is provided by Securian Life Insurance Company, an affiliate of Minnesota Life Insurance Company. Premiums paid by
Bank of America may be taxable. The customer should consult with their tax advisor for further information.