BLOOMINGTON, Minn. -- BA Mortgage, a new division of Bank of America, has introduced a six-month adjustable-rate mortgage keyed to a 12-month average of short-term Treasury securities.
Arthur D. Ringwald, an executive vice president who heads the bank's residential group, said the index would lag behind most others used for setting mortgage rates.
"As a result, it reacts more slowly to market changes and offers customers more payment stability than other indexes," he said. It offers "a highly competitive initial rate," presently 4.375%, an option to convert to a fixed-rate loan at no upfront cost, and loan amounts of as much as $2 million, he added.
Acquisition in Minnesota
BA Mortgage originates home loans through 15 retail offices in Minnesota, North Dakota, Wisconsin, and Florida, and through 50 brokers in 15 states, mostly in the Midwest.
The new unit was formed from Minnesota-based United Mortgage Corp., which was acquired on July 1, along with subsidiaries IDL Mortgage in Florida and Wisconsin, and Valley Mortgage in North Dakota. All will now operate under the BA Mortgage name.
As of June 30, Bank of America's mortgage servicing portfolio was $47 billion, to rank seventh among mortgage servicers nationally.
The corporation says it is the leading adjustable-rate mortgage lender in the country.
