The Service Employees International Union (SEIU) — the fastest-growing union in North America — today cautioned against uncritical and short-sighted support for Bank of America’s attempt to acquire troubled mortgage giant Countrywide Financial Corporation. In a statement issued today, SEIU said:

“With the deepening housing crisis and growing concerns about the unknown risks lurking on and off Bank of America’s balance sheet, we believe combining the largest bank with the largest mortgage lender will result in unnecessary and unacceptable long-term risk to the nation’s working families and consumers. Permitting such concentration of risk would be like putting a sick patient, Bank of America, together in the same room with a highly contagious and terminally-ill patient, Countrywide, and expecting both of them to get better.

“While investors and regulators are eager to see Countrywide avoid bankruptcy, it is more critical than ever that lawmakers take measures to curb the growth of the nation’s biggest banks. Huge banks and mortgage lenders have long leveraged their market dominance to rake in huge profits regardless of the risks to consumers and the economy and any bailout of Countrywide — the largest culprit in creating the subprime crisis — would be misguided.

“Rather than uncritically cheering Bank of America as a potential savior in the short-term, lawmakers and regulators must look to the potential long-term harm to working families and consumers and the risks to the economy of a Bank of America-Countrywide combination. In addition to being the largest bank in terms of branches and deposits, Bank of America already holds a dominant position in credit cards and other areas and has been growing its own mortgage lending business. Further consolidation of the nation’s banking industry would inevitably result in concentrated economic risks.

“We believe lawmakers must aggressively enforce the 10 percent cap on bank deposits and set standards for the independent and transparent calculation of bank deposits and compliance. Bank of America should not be permitted to use a ‘thrift institution’ loophole to sidestep the spirit — if not the letter — of the 10 percent cap.

“The trade-off for working families and consumers could not be clearer. While a Bank of America bailout of Countrywide could help some mortgage holders today, the long-run harm in terms of reduced competition, higher fees, and even more hidden influence in legislative and regulatory circles is just too high a price to pay for the nation’s working families.”

ABOUT SEIU
With 1.9 million members, the Service Employees International Union (SEIU) is the fastest-growing labor union in North America. Together with consumer advocacy organizations and elected and community leaders around the country, we’re leading efforts to hold the nation’s largest banks accountable to working families and our communities.

The purchase will make Bank of America the nation’s largest mortgage lender and loan servicer. This is an important advancement in the company’s desire to help customers and clients meet all of their financial needs. A mortgage is one of the key foundations of many customer relationships.

Countrywide will benefit from the stability of being part of the largest and one of the most financially strong financial institutions in the United States.

Bank of America will benefit from Countrywide’s broader mortgage capabilities, including its extensive retail, wholesale and correspondent distribution networks. The Calabasas, California-based company operates more than 1,000 field offices and has a sales force of nearly 15,000. Countrywide also has a leading mortgage technology platform, a well known brand in home lending and management expertise in a number of key areas.

Bank of America would gain greater scale in originating and servicing mortgages in the U.S. Countrywide had $408 billion in mortgage originations in 2007 and has a servicing portfolio of about $1.5 trillion with 9 million loans. The purchase also includes Countrywide’s Lender Placed insurance and other businesses.

Countrywide’s deep retail distribution will enhance Bank of America’s network of more than 6,100 banking centers throughout the U.S. After closing, Bank of America plans to operate Countrywide separately under the Countrywide brand with integration occurring no sooner than 2009.

Financial Terms
Under the terms of the agreement, shareholders of Countrywide would receive .1822 of a share of Bank of America stock in exchange for each share of Countrywide.

The purchase is expected to close in the third quarter and to be neutral to Bank of America earnings per share in 2008 and accretive in 2009, excluding merger and restructuring costs.

Bank of America expects $670 million in after-tax cost savings in the transaction, or 11 percent of the expense base of the two companies’ mortgage operations. About one third of those savings would come in 2009, two thirds would be realized in 2010 and savings would be fully realized in 2011.

The agreement has been approved by Bank of America’s board of directors and Countrywide’s board of directors and is subject to approval by Countrywide’s shareholders and customary regulatory approvals.

Subprime Initiatives
Origination of subprime loans is not planned for the combined company. Both companies share the goal of keeping distressed mortgage borrowers in their homes when possible. Both Bank of America and Countrywide continue to work with public officials and community groups to explore new initiatives to help homebuyers and communities affected by the subprime issue.

– Bank of America and Countrywide both support efforts to fight predatory
lending practices.

– Bank of America and Countrywide are active participants in the Hope Now
Alliance, which has launched a letter campaign to delinquent borrowers,
created a counseling hotline and facilitates the sharing of best
servicing practices. Bank of America also will continue Countrywide’s
commitment to participate in the American Securitization Forum’s
December 2007 reset freeze framework for 2/28 and 3/27 adjustable rate
mortgages (ARMs).

– Bank of America will continue Countrywide’s commitment to participate
in California Governor Arnold Schwarzenegger’s November 2007 subprime
ARM program.

Bank of America plans to expand the capacity and marketing of credit counseling programs and internal capacity and flexibility for loan modifications for loan workout teams following the purchase of Countrywide.

Countrywide also has a number of programs in place designed to minimize foreclosures where feasible.

– On October 23, 2007, Countrywide announced a major expansion of its
foreclosure prevention efforts by starting a $16 billion home
preservation program to assist as many as 82,000 subprime hybrid ARM
customers facing ARM resets through the end of 2008.

– On October 24, 2007, Countrywide entered into a groundbreaking
partnership with the Neighborhood Assistance Corporation of America
(NACA) to leverage Countrywide’s market leading home retention programs
and NACA’s unique model for counseling borrowers.

– On December 21, 2007, Countrywide announced work on an agreement with
the Association of Community Organizations for Reform Now (ACORN) to
serve as a blueprint for home retention and foreclosure prevention
initiatives in the mortgage industry, with a particular focus on
subprime borrowers.

Bank of America was advised by Banc of America Securities and the law firms of Cleary, Gottlieb, Steen & Hamilton LLP and K&L Gates in the transaction. Countrywide was advised by Sandler O’Neill & Partners LP and Goldman Sachs Group Inc. and the law firm of Wachtell Lipton Rosen & Katz. Countrywide’s Board of Directors was advised by Sandler O’Neill & Partners LP. Both Goldman Sachs and Sandler O’Neill delivered fairness opinions to the Countrywide Board.

Note: Bank of America management will present transaction details in an 8:30 a.m. webcast today. The presentation and supporting materials can be accessed on the Bank of America Investor Relations Web site at http://investor.bankofamerica.com/. For a listen-only connection to the conference call, dial 800.895.1241 and the conference ID: 79795.

Bank of America
Bank of America is one of the world’s largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 57 million consumer and small business relationships with more than 6,100 retail banking offices, more than 17,000 ATMs and award-winning online banking with more than 23 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 80 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE:BAC) is listed on the New York Stock Exchange.

Countrywide Financial
Founded in 1969, Countrywide Financial Corporation (NYSE:CFC) is a diversified financial services provider and a member of the S&P 500, Forbes 2000 and Fortune 500. Through its family of companies, Countrywide originates, purchases, securitizes, sells, and services residential and commercial loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. For more information about the Company, visit Countrywide’s website at http://www.countrywide.com/.

Bank of America will invest $2 billion in the form of a non-voting convertible preferred security yielding 7.25 percent annually. The security can be converted into common stock at $18 per share.

“We believe that in the current turmoil the stock market has been underestimating the value in Countrywide’s operations and assets,” said Kenneth D. Lewis, Bank of America chairman and chief executive officer. “This investment reflects our confidence in their business and recognizes the importance of the company in providing home financing across the country. We hope this investment will be a step toward a return to more normal liquidity in the mortgage markets. Countrywide has a strong mortgage origination business and it services the mortgages of one in seven American households.”

Bank of America
Bank of America is one of the world’s largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving 57 million consumer and small business relationships with more than 5,700 retail banking offices, more than 17,000 ATMs and award-winning online banking with more than 22 million active users.

Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 80 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE:BAC) is listed on the New York Stock Exchange.

And the winner is?

 SunTrust Mortgage with a 782 score of a possible 1,000

The remaining lenders in the top 5 are:

• Bank of America – 781
• Wachovia – 774
• Wells Fargo – 766
• Chase – 762

Option One Mortgage Corporation scored a second to last place with the satanical 666 score. After their parent H&R Block announced last week a $39 million pre-tax loss for Option One, this probably adds insult to injury. H&R Block has been trying to sell Option One for several months.

Good news for the industry overall is that satisfaction was up 7% over the same period in 2005. The study measures satisfaction in the three phases of lending: application/approval process; loan officer; and closing. The increase over 2005 satisfaction survey results was primarily in the closing phase.

The study found that 28% of people surveyed had problems in the closing phase of the transaction. On average, 40 percent of these people stated their loan did not close on time. How important is that third phase of the transaction? Customers of the top 5 ranked lenders make 20% more recommendations of their lender  to others.

Read the entire press release here.

Information about JD Power and Associates is here

The survey also showed that 56% of homeowner’s did major home improvements prior to putting the home on the market for sale.

“In today’s real estate market, homeowners not only want to modernize their living space, but also ensure that the improvement made to the property is a solid investment in the home’s value,” said national home improvement expert Danny Lipford. “There is no better or smarter investment than increasing the equity in one’s home by choosing smart home improvement projects that will likely increase the value of one’s home.”

The survey also revealed that when it comes to home improvement projects, potential sellers and buyers aren’t always attracted to the same projects.

The most appealing home improvements among potential buyers include:
– Energy efficient changes (81 percent)
– Remodeled kitchen or bathroom (78 percent)
– New roof (69 percent)

The most common home improvements made before selling a home include:
– Landscape or garden design (36 percent)
– Remodeling kitchen and remodeling or adding bathroom (27 percent)
– Replacing or fixing roof (33 percent)

Apparently aside from bathroom or kitchen remodeling, the seller’s and buyer’s desires are not in alignment. Also, many home sellers were unsure of the additional home value they would receive from doing the home improvements.

Top Home Improvement Projects That Provide the Greatest Return at Resale

Project Value Cost of Project Added Home
Siding Replacement $10,393 $10,771
Bathroom Remodel $10,499 $10,727

Home Improvement Projects That Provide the Least Return at Resale

Project Value Cost of Project Added Home
(1)Master Suite – Upscale $137,891 $110,215
Home Office Remodel $13,143 $9,569

The study also asked the means of financing used to improve the home. Almost 1/3rd of respondents used a Home Equity Line of Credit. “Making an investment toward your home is important in today’s housing market,” says David Rupp, Home Equity Executive at Bank of America. “From the survey we conducted, we know that nearly nine in ten homeowners have made a major home improvement and one in ten is planning to do it,” continued Rupp.
“Customers should know that with the availability of our competitive offerings, a home equity line of credit is often the best method of financing these projects.”

Bank of America created a flexible home equity line of credit that helps consumers leverage the equity in their home to improve their financial position, build wealth through homeownership and cost-effectively prepare consumers for unexpected expenses. Consumers can apply for the low cost home equity line of credit anywhere Bank of America products and services are available.

To speak with a Bank of America Account Executive, visit online at http://ae.bankofamerica.com/kenstampe