Bank of America (BofA) is planning to reduce its $850 billion portfolio of troubled home loans by about half over the next three years, Financial Times reports. The bad loans will be cut to between $450 billion and $500 billion. The move will help resolve problems related to the housing crisis and its acquisition of Countrywide Financial. BofA owns about $118 billion of the problem loans, while it services the rest, meaning it gathers payments from borrowers and initiates foreclosure proceedings.
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