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3 On Your Side: Bank Of America Mortgage Change

PHILADELPHIA (CBS) – A policy change by the country’s top bank has some mortgage customers crying foul.

Some Bank of America mortgage customers will receive a not-so-sweet change to their monthly mortgage bill grace period. It takes effect on Valentine’s Day, February 14th.

Joe Ridout from Consumer Action said, “They’re reducing the grace period in which you can pay your mortgage fee for free from 15 days to nine days if you’re paying from a different financial institution.”

That means if you have a mortgage owned by Bank of America and you pay it with your Bank of America checking account, there is no change to your 15-day grace period. But if you bank somewhere else, like Wells Fargo, and you pay your Bank of America mortgage from that checking account your grace period is knocked down to nine days. Pay after that and you’ll be hit with an extra $6 fee.

So why the change? Bank of America, like other banks, is looking at new ways to recoup the $2.3 billion dollars in overdraft feeds that they’ve lost since recent banking reforms have been put in place.

Don’t be surprised if other banks follow suit. In fact, you probably can bank on it.

Watch the video…

Reported By Jim Donovan, CBS 3

Top Content On CBSPhilly

  • Tom Constan

    I am mortgage loan officer for another bank. I believe what BOA is trying to do is illegal. At the closing of your mortgage, you sign the “Note.” This is your promise to repay the loan. The Note stipulates the terms and conditions of the loan – terms and conditions that cannot be changed! If the Note allows a 15-day grace period, that cannot be changed. If BOA wants to reduce thee grace period, it will have to do it going forward with their new loans.

  • Mel K

    What’s the big deal? I’m tired of people crying about these types of fees. If you need an extra 6 days every month to make your payment within the grace period, you’ve got more issues to worry about than paying an extra $6. They’re already giving you a 9 day grace period, which is better than 0 days.

    • Huh?!

      Ok, let’s say your tight on money. Maybe you’ve even LOST YOUR FREAKING JOB! And you are doing your best to be honest and STILL PAY YOUR MORTGAGE. What’s the big deal? They just dinged you more money fo no reason, that’s the big deal! And you’re already short! People like you disgust me, you side with companys that agree to one thing and then change the rules of the game for no reason other than the sacred bottom line and then try to blame the little guy.

  • Guess Who

    Diana, Wells Fargo makes a lot of their money from illegals and even gave them mortagages without proper ID.

  • Guess Who

    And the Dems said Finance Reform would save us money. No, the banks get their pound of flesh one way or another.

  • jimdonovancbs3

    Andrew – this is an additional $6 to what is already charged by BAC. I’ve confirmed it with their media department. Jim D.

  • christopher

    Oh really! Refi, have you tried to do that lately? Virtually impossible unless you haven’t made payments or your debt to income is exactly where they wan’t it. They don’t look at your assets at all. They took our money for the bail out, who is going to bail us out?

  • Diana Whitehead

    BOA is a big reason why the economy tanked in 2008. These banks buying small banks like sharks. BOA should have been the first to be put on the chopping block.
    I remember when Bush was saying everyone deserves a home. First in line illegals and what bank welcomed them BOA, and the other banks they bought.
    Any company as big as BOA should be taken down a peg or two. All the people with mortgages with them should try to go to another bank refinance. And anyone thinking of buying a home go to Wells Fargo or another bank stay away from BOA.

  • Andrew

    There already is a $6 fee from about the 6th or 10th to the 16th. It’s a service charge. A sizable late fee is charged in addition to the small fee charge from about the 17th. You do not have all the facts in thus case. Sorry this time.

  • bottomline

    These banks should have been closed. They’ve destroyed our economy with their greedy schemes and their victims continue to pay, coming and going. Luckily, Uncle $cam is in their pocket.

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