February 20, 2008 Kenneth Lewis Chairman & CEO Bank of America 100 North Tryon Street Charlotte, North Carolina 28255 RE: Bank of America’s Opportunity to Rebuild Broken Dreams Dear Mr. Lewis, Bank of America’s pending merger with Countrywide could either benefit hundreds of thousands of Californians or further decimate their financial future. In acquiring Countrywide, Bank of America will become responsible for more than nine million new customers. Many of these customers are faced with the threat of foreclosure. California is in the midst of a mortgage foreclosure crisis that is predicted to worsen as interest rates on large pools of mortgage loans continue to reset. Half a million California homeowners are on the verge of losing the single most important investment of their lives. The California Reinvestment Coalition (CRC) members and allies are highly concerned about Bank of America’s plans to purchase the troubled Countrywide, because Countrywide’s unbridled business practices and lowered mortgage lending standards paved the way for this crisis. Bank of America not only stands to acquire the largest mortgage lender and servicer in the nation, but numerous lawsuits and defaulted mortgage loans as well. CRC members and allies therefore request a meeting next month in California to move forward together on these critical issues. Bank of America considers itself to be a leader in the world of banking. You have publicly stated that: "Bank of America helps build strong communities by creating opportunities for people — including customers, shareholders and associates — to fulfill their dreams." Countrywide’s bad lending practices are ruining the dreams of thousands of Californians – Countrywide borrowers and employees alike – and Bank of America has the opportunity to rebuild them. As part of the purchase agreement, we are asking Bank of America to place an immediate moratorium on all foreclosures of Countrywide mortgages. And we are also asking the Bank to develop a plan to help Countrywide employees keep their jobs. In past mergers and operations, Bank of America has eliminated 30,000 jobs, which creates serious concerns regarding Countrywide employees. To help rebuild the dreams of Countrywide’s borrowers and employees, Bank of America must:
Initiate an immediate foreclosure moratorium on all mortgage loans in Bank of America’s and Countrywide’s portfolios, including those that are currently being serviced. Modify loans for borrowers in danger of losing their homes to a fixed interest rate of no more than 6% for 30 years. Maintain Countrywide’s headquarters in Calabasas, and its loan servicing center in Simi Valley. These Countrywide employees are needed to modify and restructure loans.
Bank of America has the opportunity to rebuild the broken dreams of Countrywide borrowers. Your leadership on this important issue is needed now more than ever. CRC members and allies look forward to meeting with you. Thank you. Signed: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) AARP - Sacramento Amador-Tuolumne Community Action Agency, Jackson Affordable Housing Services, Los Angeles AnewAmerica Community Corporation, Oakland Asset Policy Initiative of California, San Francisco Bay Area Legal Aid, Richmond Bayview Hunters Point Foundation, San Francisco Bernal Heights Neighborhood Center & Housing Corporation, San Francisco California Alliance for Consumer Protection, Sacramento California Association for Micro Enterprise Opportunity, San Francisco California Capital Financial Development Program, Sacramento California Coalition for Rural Housing, Sacramento California FarmLink, Sebastopol California Reinvestment Coalition, San Francisco California Resources and Training, Oakland
16) 17) 18) 19) 20) 21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38)
California Rural Legal Assistance, Marysville Center for California Homeowner Association Law, Oakland Center for Third World Organizing, Oakland CHARO Community Development Corporation, Los Angeles City of Oakland Homeownership Program, Oakland Civic Center Barrio Housing Corporation, Santa Ana Community Housing Council of Fresno, Fresno Community Housing Development Corporation of North Richmond Communiity Legal Services of East Palo Alto Consumer Action, San Francisco Consumer Federation of California, San Mateo Earned Asset Resource Network San Francisco
East Bay Asian Local Development Corporation, Oakland East Bay Housing Organization, Oakland East Los Angeles Community Corporation East Oakland Community Development Corporation East Palo Alto Council of Tenanats Education Fund EPA CAN DO, East Palo Alto Fair Housing Council of San Diego Fair Housing Council of the San Fernando Valley Fair Housing Law Project, San Jose Fair Housing of Marin Fair Housing Napa Valley
39) 40) 41) 42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)
Faith Based CDC, Oceanside Faith Based Federal Credit Union, Oceanside Housing and Economic Rights Advocates, Oakland Housing Rights, Berkeley Inland Fair Housing and Mediation Board, Upland Insight Center for Community Economic Development, Oakland Jefferson Economic Development Institute, Mt. Shasta Justice First, Oakland Justice Organizing Leadership and Treasurers, Oakland Integrated Services, Oakland La Raza Centro Legal, San Francisco Lao Family Community Development, Oakland Law Center for Families, Oakland League of United Latin American Citizens Legal Aid Foundation of Los Angeles Legal Services of Northern California, Sacramento Lenders for Community Development, San Jose Los Angeles Coalition to End Hunger and Homelessness Lulac, Port Hueneme Council 3120, Port Hueneme Mercy Housing California, Sacramento Mid-Peninsula Housing Coalition, Foster City Mission Anti-displacement Coalition, San Francisco Mission Community Council
62) 63) 64) 65) 66) 67) 68) 69) 70) 71) 72) 73) 74) 75) 76) 77) 78) 79) 80) 81) 82) 83) 84)
Mission Community Financial Assistance, San Francisco Mission Economic Development Association, San Francisco Multicultural Real Estate Alliance for Urban Change, Culver City Nehemiah Community Reinvestment Fund, Sacramento Neighborhood Housing Services of Silicon Valley, San Jose NID-Housing Counseling Agency, Oakland NonProfit Housing Association of Northern California, San Francisco Oakland Association of Insurance Agents, Inc. Orange County Community Housing Corporation, Santa Ana Pacific Asian Consortium in Employment, Los Angeles PODER, San Francisco Project Sentinel, Palo Alto Public Interest Law Firm, San Jose Public Interest Law Project, Oakland Renaissance Entrepreneurship Center, San Francisco Sacramento Mutual Housing Association San Antonio Community Development Corporation, Oakland San Diego Reinvestment Task Force Self-Help Enterprises, Visalia Sierra Planning & Housing Alliance, Sonora Sober Living Network, Santa Monica Southern California Association of NonProfit Housing, Los Angeles Southern California Housing Rights Center, Los Angeles
85) 86) 87) 88) 89) 90) 91)
St. Peter's Housing Committee, San Francisco STAND Affordable Housing, Stockton Teamsters Local 601, Stockton Transnational Institute for Grassroots Research and Action, Oakland Urban Strategies Council, Oakland Vermont Slauson EDC, Los Angeles The Watsonville Law Center, Watsonville