Bank of America’s performance is affected by Florida mortgages
Bank of America while filing its quarterly results stated that performance is hit by Florida mortgage portfolio where the disturbing data on payment option adjustable-rate mortgages is showed by Countrywide Financial acquired by Bank of America in July starting.
As of June 30 Bank of America announced $463 million out of the $15.17 billion in residential mortgages Charlotte, N.C as non current. This ratio is higher than other states included in its report which is of 3.05 percent.
Bank of America’s total nonperforming mortgage ratio was 1.37 percent. In the second quarter on Bank of America’s Florida mortgage portfolio it showed $19.9 million in net losses. It captivated the most losses in California, at $39.1 million.
In Bank of Americas home equity loans Sunshine State also performed the worst. $367 million was reported as nonperforming out of its $16.34 billion home equity portfolio in Florida forming a ratio of 2.25 percent. For the bank’s total home equity loans nonperforming ratio was 1.52 percent. In second quarter Bank of America took $193 million in losses on its Florida home equity loans. Bank of America is the second-largest bank in the St. Louis, Mo., area having above $6.6 billion in deposits and a 12.92 percent market share, as on June 30, 2007.
