Tulsa World: BofA touts lending of $184 billion in quarter

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BofA touts lending of $184 billion in quarter

NEW LOANS
Ken Lewis: "In all our work, from loan modifications to new lending and investing, a key theme is quality, not just quantity."

By AP Wire Services
Published: 11/10/2009 2:24 AM
Last Modified: 11/10/2009 8:38 AM

CHARLOTTE, N.C. (AP) — Bank of America Corp. said Monday that it extended nearly $184 billion in credit during the third quarter, as households and communities remain under financial strain.

In its latest lending and investing initiative report, home loans continue to be among the bank's priorities, with Bank of America extending $96 billion in first mortgages during the third quarter. The loans helped nearly 450,000 people purchase a home or refinance a mortgage, the bank said.

Among its loans in the quarter, the bank provided $7 billion in credit to municipalities and nonprofits that are struggling to keep pace with local needs and serve communities across the country.

In the business sector, Bank of America also extended $78 billion in small-business and commercial loans in the third quarter.

"In all our work, from loan modifications to new lending and investing, a key theme is quality, not just quantity," the bank's outgoing CEO, Ken Lewis, said in the report. "The number of customers we serve is important, but making sure that modifications are sustainable, and that new loans satisfy sound underwriting requirements, are equally important."

Bank of America lost more than $2.2 billion in the third quarter as loan losses kept rising, providing evidence that consumers are still struggling to pay their bills.

The Charlotte bank has about 53 million consumer and small-business customers.

Since the fourth quarter of 2008, Bank of America said, it has extended

$759 billion in new credit. The figure represents almost $17 for every dollar of the $45 billion the bank received under the Troubled Asset Relief Program, or TARP, the bank said.

Bank of America is among hundreds of banks that have received government support through TARP. The bank received $25 billion as part of the initial round of investments when the credit crisis peaked last fall. It then received an additional $20 billion in January shortly after it acquired Merrill Lynch & Co. in a heavily scrutinized deal. By AP Wire Services

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