The Bank of America and Bank of New York are expanding their partnership to help borrowers get loans.
The banks will share information on borrowers’ creditworthiness through a mobile app.
Banks will be able to offer loan modification or modification options, including lowering a borrower’s interest rate or lowering the amount of a loan.
The partners are offering a new loan modification option for borrowers in the same line of work as an average consumer, and an additional loan modification to borrowers with less than $50,000 in outstanding student loans.
“Banks are investing in the future of borrowers through innovative partnerships that will help millions of borrowers stay on track to repay their student loans,” said Elizabeth M. Barger, Bank of American’s president and CEO.
“Banks need our help with these loans, and we want to give borrowers a loan modification that will keep them on track for repayment and help them avoid debt traps that keep them from paying their student loan debt.”
Bank of New Jersey, which is the second-largest lender in the United States, and Wells Fargo, which has the third-largest loan volume, announced the partnerships in January.
The banks say they will also offer loan modifications to borrowers in their home markets.
The companies said that borrowers who are underperforming on their loans can apply for loan modification.
The new loan options include:Reduce a borrower-to-federal government mortgage rate from 5.95% to 3.65% and a borrower who has less than 30 days remaining in the loan term from 5% to 2.95%.
In addition, borrowers with outstanding federal student loans will be eligible for a reduction in the principal balance of their federal student loan.
For more information, visit the banks website at www.bankofnewyork.com/bank/home.