Northern Virginia Association of Realtors George Mason University September 23, 2009 9:00am – 10:30am

Agenda Bank of America Breadth Simplicity & Transparency in the Lending Process, Today’s Announcements Short Sales Bank of America’s Strategic Programs Portal Future of Consumer Lending For More Information Appendix HAMP Performance Watch Items

Bank of America Breadth

Simplicity & Transparency in the Lending Process, Today’s Announcements

Short Sales

Bank of America’s Strategic Programs Portal

Future of Consumer Lending

For More Information

Appendix

HAMP Performance

Watch Items

Bank of America Breadth One of the world’s largest financial institutions 53 million consumer and small business relationships 6,100+ retail banking offices Nearly 18,500 ATMs and award-winning online banking with 29 million active users 282,000+ employees Industry rankings among U.S. banking companies (1) #1 in earnings at $5.2 billion #1 in equity at $255 billion #1 in assets at $2.254 trillion (1) For 1H09 or at 6/30/09

One of the world’s largest financial institutions

53 million consumer and small business relationships

6,100+ retail banking offices

Nearly 18,500 ATMs and award-winning online banking with 29 million active users

282,000+ employees

Industry rankings among U.S. banking companies (1)

#1 in earnings at $5.2 billion

#1 in equity at $255 billion

#1 in assets at $2.254 trillion

Bank of America Breadth Open for Business: Lending & Investments 2009 Year-to-date through June 30, 2009 (1) Extended $394+ billion in total credit Funded $196 billion in first mortgage loan products and increased our mortgage lending capacity Funded $40 billion in low- to moderate-income mortgages Funded $8 billion in small business & $149 billion in commercial non-real estate loans Network of 8,000 mortgage loan sales professionals Maintain a servicing portfolio of over $2 trillion, representing 14.1 million loans and a market share of 19.2% (1) For 1H09 or at 6/30/09

Open for Business: Lending & Investments

2009 Year-to-date through June 30, 2009 (1)

Extended $394+ billion in total credit

Funded $196 billion in first mortgage loan products and increased our mortgage lending capacity

Funded $40 billion in low- to moderate-income mortgages

Funded $8 billion in small business & $149 billion in commercial non-real estate loans

Network of 8,000 mortgage loan sales professionals

Maintain a servicing portfolio of over $2 trillion, representing 14.1 million loans and a market share of 19.2%

Simplicity and Transparency in the Lending Process Today’s Announcements BankAmericard® Basic™ Visa® Card Customers pay one basic rate for all types of transactions Purchases, balance transfers and cash advances Rate tied to U.S. Prime Rate and will not change over life of the account U.S. Prime Rate + margin of 14%, rate only changes if Prime Rate changes No over-the-limit fee; Over-the-limit transactions are denied Easy, single page disclosure document explains terms & conditions One flat fee of $39 charged for late payments Will be available online starting in October Clarity Commitment™ Simple, one-page summary of the borrower’s loan terms & closing costs Provided for all refinance, purchase and modified loans More than 500,000 customers have received Clarity Commitments since April Important payment terms are highlighted Given at beginning of loan process & again at closing Interactive Home Loan Guide walks borrowers through the home loan process Aims to change conversation from “how much house can I buy” to “how much house can I afford”

Today’s Announcements

BankAmericard® Basic™ Visa® Card

Customers pay one basic rate for all types of transactions

Purchases, balance transfers and cash advances

Rate tied to U.S. Prime Rate and will not change over life of the account

U.S. Prime Rate + margin of 14%, rate only changes if Prime Rate changes

No over-the-limit fee; Over-the-limit transactions are denied

Easy, single page disclosure document explains terms & conditions

One flat fee of $39 charged for late payments

Will be available online starting in October

Clarity Commitment™

Simple, one-page summary of the borrower’s loan terms & closing costs

Provided for all refinance, purchase and modified loans

More than 500,000 customers have received Clarity Commitments since April

Important payment terms are highlighted

Given at beginning of loan process & again at closing

Interactive Home Loan Guide walks borrowers through the home loan process

Aims to change conversation from “how much house can I buy” to “how much house can I afford”

Short Sales Overview Uniformity under Making Homes Affordable First goal is to determine if loan mod or other home retention solution is available Taken steps to improve our service relative to increased demand We have 2 initiatives in pilot or planning to provide for faster decisions and less fall-out by setting pre-approved reserve prices on homes Recently deployed new technology Automated decision model Streamlining processes Improving communications with real estate agents New internet portal that provides real-time information for agents & accepts documentation to expedite the short sale process

Uniformity under Making Homes Affordable

First goal is to determine if loan mod or other home retention solution is available

Taken steps to improve our service relative to increased demand

We have 2 initiatives in pilot or planning to provide for faster decisions and less fall-out by setting pre-approved reserve prices on homes

Recently deployed new technology

Automated decision model

Streamlining processes

Improving communications with real estate agents

New internet portal that provides real-time information for agents & accepts documentation to expedite the short sale process

Short Sale Considerations If no other home retention solution exists, a short sale may provide advantages to borrower, servicer, investor – a last resort to FCL Borrower advantages Allows borrowers to make dignified exit, avoiding foreclosure & eviction Typically less negative on a credit report vs. foreclosure Servicer & investor advantages May mitigate loss by avoiding costs, holding expenses, depreciation, and marketing the REO (BAC in VA at 8/31/09) Community advantages Borrower stays in the home & keeps up property until new purchaser arrives Disadvantages Borrower: potential tax liability; possibility of promissory note or other out of pocket costs at closing All parties: time consuming, high-risk transaction Avg. time is 50 days, but can be 90+ days if investor approval necessary

If no other home retention solution exists, a short sale may provide advantages to borrower, servicer, investor – a last resort to FCL

Borrower advantages

Allows borrowers to make dignified exit, avoiding foreclosure & eviction

Typically less negative on a credit report vs. foreclosure

Servicer & investor advantages

May mitigate loss by avoiding costs, holding expenses, depreciation, and marketing the REO (BAC in VA at 8/31/09)

Community advantages

Borrower stays in the home & keeps up property until new purchaser arrives

Disadvantages

Borrower: potential tax liability; possibility of promissory note or other out of pocket costs at closing

All parties: time consuming, high-risk transaction

Avg. time is 50 days, but can be 90+ days if investor approval necessary

Short Sales & Setting Expectations Traditionally process doesn’t begin until offer is received Each potential sale is reviewed on a case by case basis In most cases, documentation of the borrower’s financial hardship and financial information must be supplied and reviewed by servicer Appraisal done to determine current value – typically allow 10 days Offer must reasonably meet current value Buyer must financially qualify Validation that it’s an arms-length transaction Generally investor has to approve offer MI insurance on the loan may require additional approvals All lien holders on the property must approve the transaction 60% - 70% fallout rate after approval driven by: Low-ball offers or buyers “shopping” for best deal Lengthy time involved and buyer withdrawing offer

Traditionally process doesn’t begin until offer is received

Each potential sale is reviewed on a case by case basis

In most cases, documentation of the borrower’s financial hardship and financial information must be supplied and reviewed by servicer

Appraisal done to determine current value – typically allow 10 days

Offer must reasonably meet current value

Buyer must financially qualify

Validation that it’s an arms-length transaction

Generally investor has to approve offer

MI insurance on the loan may require additional approvals

All lien holders on the property must approve the transaction

60% - 70% fallout rate after approval driven by:

Low-ball offers or buyers “shopping” for best deal

Lengthy time involved and buyer withdrawing offer

Future of Consumer Lending Simplicity: The Bank of America brand promise We will always be a responsible lender We will help create successful homeowners Demystify the home buying process Support sustainable homeownership Lead by our clear and transparent standards in home lending Bringing Opportunity Home Transparency: Voice of the Customer: More than 90% of customers in recent surveys said a clear explanation of the loan terms & condition was as essential as low fees & great service

Simplicity:

The Bank of America brand promise

We will always be a responsible lender

We will help create successful homeowners

Demystify the home buying process

Support sustainable homeownership

Lead by our clear and transparent standards in home lending

Bringing Opportunity Home

Transparency:

Voice of the Customer: More than 90% of customers in recent surveys said a clear explanation of the loan terms & condition was as essential as low fees & great service

Bank of America’s Strategic Programs Portal

Allen H. Jones [email_address] National Default Management Policy Executive Annandale, Virginia Office Bank of America mortgage loan officer Bank of America Home Loans Clarity Center http://homeloans.bankofamerica.com/home For More Information Bank of America, N.A., Member FDIC Equal Housing Lender © 2009 Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

Allen H. Jones

[email_address]

National Default Management Policy Executive

Annandale, Virginia Office

Bank of America mortgage loan officer

Bank of America Home Loans Clarity Center

http://homeloans.bankofamerica.com/home

Bank of America, N.A., Member FDIC Equal Housing Lender © 2009 Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

Appendix

Default Management – HAMP Details Centerpiece of our home retention efforts Increased offers extended under HAMP to nearly 141,000 at 9/14/09 Nearly tripled customers in active trial modifications in under 2 mo.’s 28,000 through 7/31/09 81,000+ at 9/14/09 Foreclosure sale placed on hold for HAMP-eligible borrowers Fewer than 3% of the 14 million loans in our servicing port face foreclosure Devoted substantial systems, training & resources to home retention Focus areas: Make process more customer friendly Improve customer documentation efficiency Improve customer communication throughout process

Centerpiece of our home retention efforts

Increased offers extended under HAMP to nearly 141,000 at 9/14/09

Nearly tripled customers in active trial modifications in under 2 mo.’s

28,000 through 7/31/09

81,000+ at 9/14/09

Foreclosure sale placed on hold for HAMP-eligible borrowers

Fewer than 3% of the 14 million loans in our servicing port face foreclosure

Devoted substantial systems, training & resources to home retention

Focus areas:

Make process more customer friendly

Improve customer documentation efficiency

Improve customer communication throughout process

Watch Items First Time Homebuyer Tax Credit Applies to purchases that close after 4/8/09 and before 12/1/09 Credit expanded to $8,000 for purchases made in 2009 before Dec 1 st Applies only to homes used as a taxpayer’s principal residence Reduces a taxpayer’s tax bill or increases his/her refund, dollar for dollar Is fully refundable, meaning the credit will be paid out to eligible taxpayers even if they owe no tax or the credit is more than the tax owed Certain restrictions & eligibility apply Future of Fannie Mae and Freddie Mac Unemployment Challenges Facing Industry in 2010

First Time Homebuyer Tax Credit

Applies to purchases that close after 4/8/09 and before 12/1/09

Credit expanded to $8,000 for purchases made in 2009 before Dec 1 st

Applies only to homes used as a taxpayer’s principal residence

Reduces a taxpayer’s tax bill or increases his/her refund, dollar for dollar

Is fully refundable, meaning the credit will be paid out to eligible taxpayers even if they owe no tax or the credit is more than the tax owed

Certain restrictions & eligibility apply

Future of Fannie Mae and Freddie Mac

Unemployment

Challenges Facing Industry in 2010