NEW YORK — Bank of America Corp. announced that it will make principal forgiveness a priority for certain subprime mortgages.

Bank of America had been under pressure to help subprime mortgage borrowers it inherited with the purchase of Countrywide Financial. On Wednesday, the bank said it "will look first at principal forgiveness, ahead of an interest rate reduction, when modifying certain subprime, Pay-Option and prime two-year hybrid mortgages" that qualify for its National Homeownership Retention Program.

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