Bank of America Will Maintain Current Mortgage Standards
Bank of America chief Brian Moynihan announced that the company will not loosen mortgage standards despite a push by regulators for increased lending. "You won’t see us start to expand our criteria much past what we’ve done today,” the CEO said during a BoA-sponsored investor conference in New York. “I don’t think there’s a big incentive for us start to try to create more mortgage availability where the customers are susceptible to default.”
Moynihan's statement was at odds with those of JPMorgan's Jamie Dimon, who has criticized what he deems an excessively tight credit market. The Obama administration has also taken strides to free up credit and shut fewer first time homebuyers out of the market. Since the 2008 economic crash BoA has paid more than any other firm—over $70B—in legal settlements tied to the housing crash.
