Bank Of America Introducing New Bank Fees For Mortgages

By Paula Ebben, WBZ-TV

BOSTON (CBS) – Ever since congress passed legislation cracking down on overdraft fees, many banks have come up with all kinds of new fees to make up for that lost revenue.

“The money is racking up, so it’s getting frustrating,” one customer told us on his way into a bank in Brighton Center.

It is about to get a lot more frustrating for anyone who has a mortgage with Bank of America. Starting on February 14th, if you don’t have a Bank of America checking account you are going to have less time to pay your mortgage without getting a late fee.

“They are trying to condense that 15-day grace period down to more like nine days,” explained Babson College Business Professor Glen Kelley.

WBZ-TV’s Paula Ebben reports.

So here’s the bottom line: If you have a Bank of America mortgage and you pay with your Bank of America checking account, there is no change in your 15-day grace period. But if your checking account is with another bank, you’ll only have a nine day grace period. If you pay in that last 6 days of the grace period, you get hit with a $6 fee.

“This is a situation to encourage people to bank with Bank of America,” Kelley said. Experts believe if this strategy works out well for Bank of America, other banks will likely follow suit. And that, according to Kelley will make it tricky for consumers. “A lot of mortgages are sold from bank to bank and from company to company. Does that mean the customer is going to have to open a new checking account with whatever bank the mortgage is sold to,” he said.

Other new bank fees:

More from Paula Ebben
  • Jennifer

    I have a BofA mortgage and don’t bank with BofA, and it says right on the payment page that the new fee structure will be $0 fee the first HALF of the grace period, and $6 fee the second HALF of the grace period. Half of 9 days does not equal 3 days, so your information is mistaken. Technically it should be by noon on the 4th day, but since it’s not February 14 yet, I can’t see the little calendar that spells out for me exactly what the fee might be on any day I pay. I always pay on the last day of the grace period that does not incur a fee now, and their new structure won’t change that for me. Since I’ve had my mortgage with BofA, the fee structure was $0 fee if paid in the first 3rd of the 15-day grace period, $3 if paid in the middle third of the grace period, and $6 if paid during the last third of the grace period. Their new fee structure certainly isn’t as dire as this article makes it sound. Since the mortgage is due on the first of the month, I am happy to have any fee-free grace period in the first place!

  • Mike

    Bank fees are getting out of hand and no one is doing anything about it. Banks charge fees for cashing a check if you do not have an account with them, they charge fees for not having a minimum amount in a particular account, processing fees for making monthly payments in stead of quarterly or semi annually or even annually. Fees Fees Fees. Enough is Enough

  • alanonthego

    stop dealing with banks and join a credit union. I left the banking world behind when Shawmut bought the bank i was doing business with and started charging all kinds of fees. I joined 2 credit unions and I am still with them today.

    • kevin

      Few credit unions service their own mortgages, just like a bank they turn around and sell it immediately.

      My CU sold my mortgage to Bank of America!

  • diane20fan

    When you sign your mortgage it states all terms. And usually the late fee time is on there too. Shouldn’t they have to abide by the contract terms?

    • Jennifer

      The late fee hasn’t changed, it’s still applied to everyone regardless of who they bank with after the 15th day. This article is talking about fees you are charged if you pay your mortgage (online) through a checking account with any bank other than with Bank of America. If I mail them a check from my own bank and it gets there before the 15th of the month, I still pay no fees. Thus, the contract hasn’t changed.

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  • Bill

    Time for us citizens to do jwhat is happening in Egypt . I’m fed up with our government and all the crooks who work for it time to make changes for us .

  • CEO

    As fast as Congress tries to control these institutions the faster they come up with even more devious ways to steal our hard-earned money. Bank of America has that down to an artform. I hope they’re proud of themselves.

    I was just talking to our local BofA branch manager on Monday. She was asking me why I don’t do more business with them. I said it’s simple, you fee me to death. I need a certified check, you want to charge me a $7 fee to use my own money. I’m surprised they don’t charge to breathe the air when you’re inside one of their branches. Bank of America is the least customer-friendly bank I do business with. Thus, most of my accounts are at other financial institutions. And I agree with alanonthego, join a credit union. They still seem to know what customer service means.

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