Bank of America Launches Major Zero Downpayment Mortgage Program in Alaska.

ANCHORAGE, Alaska--(BUSINESS WIRE)--March 2, 1998--Bank of America, one of the nation's largest mortgage lenders, announced today it has launched a major new zero downpayment home loan program that will help thousands of low-income households in Alaska and 22 other states obtain homeownership.

Under this new mortgage program -- called the Neighborhood Advantage Zero Down(TM) home loan -- Bank of America will provide $500 million in financing nationally, marking the first time that a conventional mortgage requiring no downpayment from borrowers has been offered on such a widespread geographic basis and at such a significant lending commitment level.

The program is being offered in selected counties in Alaska and 22 other states where Bank of America has either a retail branch presence or BankAmerica Mortgage retail lending offices. (See complete list of states below.)

The Neighborhood Advantage Zero Down mortgage is designed to help a traditionally under-served segment of consumers -- those who have low incomes and excellent credit histories, yet have little cash for a downpayment or other upfront homebuying costs. The new 30-year, fixed rate home loan also is available to borrowers of any income who are buying or refinancing a home in low-income neighborhoods. In addition to the zero downpayment feature, closing costs for this mortgage can come from a gift, grant, installment loan, or the seller.

BankAmerica Mortgage -- Bank of America's residential mortgage lending group -- is working with GE Capital Mortgage Insurance Corporation to make this unprecedented mortgage available. GE Capital is providing mortgage insurance for the Neighborhood Advantage Zero Down home loan.

"We are very excited to be offering this innovative new product that will help many low-income families turn their homeownership dreams into reality," said Mark Smith, regional senior vice president for Bank of America in Alaska. "Bank of America has a long history of helping low-income borrowers and communities in the many markets we serve, and the Neighborhood Advantage Zero Down mortgage is part of our ongoing commitment to serve this important customer segment," Smith said.

"We were delighted to work with Bank of America to design the Neighborhood Advantage Zero Down program. This product demonstrates Bank of America's commitment to serving community needs and GE Capital's commitment to serving customer needs," said Martin H. Heck, executive vice president and general manager of GE Capital Mortgage Insurance.

The new Neighborhood Advantage Zero Down home loan requires significantly less out-of-pocket cash to complete a home purchase than is required with a traditional 3 percent down mortgage or a Federal Housing Administration (FHA) mortgage. For a $100,000 home purchase price, for example, consumers using a Neighborhood Advantage Zero Down loan would need approximately $2,028 to close their transaction -- less than half the amount they would need with either a traditional 3 percent downpayment mortgage or a comparable FHA loan. All three loans require closing costs, but only the Neighborhood Advantage Zero Down home loan allows no downpayment on the purchase price of the home.

In addition to Alaska, the Neighborhood Advantage Zero Down mortgage is now available in Washington, D.C. and selected counties in these 22 other states: Arizona, California, Connecticut, Delaware, Hawaii, Idaho, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota, Oregon, Pennsylvania, Texas, Virginia, Washington, West Virginia, and Wisconsin.

The maximum loan amount allowed in Alaska under this new mortgage program is $300,000. To be eligible for the Neighborhood Advantage Zero Down home loan, a borrower must have an excellent credit history and an annual income that does not exceed 80 percent of median income for the Metropolitan Statistical Area where the home is located. There is no income limit for borrowers purchasing or refinancing homes located in low-income census tracts.

Here are examples of maximum annual incomes allowed for some Metropolitan Statistical Areas in Alaska: Anchorage ($47,360) and Juneau Borough ($52,160).

GE Capital Mortgage Insurance Corporation is a unit of Raleigh, NC-based GE Capital Mortgage Corporation, which is a subsidiary of GE Capital Services. GE Capital Services, which has assets of approximately $250 billion, is a global, diversified financial services company with 27 specialized businesses. A wholly-owned subsidiary of General Electric Company, GE Capital Services, based in Stamford, CT, provides equipment management, mid-market and specialized financing, specialty insurance and a variety of consumer services, such as car leasing, home mortgages and credit cards, to businesses and individuals around the world. GE is a diversified manufacturing, technology and services company with operations worldwide.

San Francisco-based BankAmerica Corporation, the nation's fifth largest bank holding company, has more than 1,800 branch offices in its retail banking network in nine states, including 11 branches in Alaska, and an award-winning web site located at http://www.bankamerica.com. BankAmerica Mortgage, a division of Bank of America FSB, originates home loans through retail lending centers in 23 states and through wholesale/telemarketing operations which serve all 50 states. Additional specialized loan origination units serve the realty, builder, corporate relocation, and affinity relationship markets throughout the United States. BankAmerica Corporation is one of the largest mortgage lenders and mortgage servicers in the United States. -0-

NOTE TO EDITORS AND REPORTERS -- PressPass, exclusively for the news media at http://www.bankamerica.com/presspass, provides quick and easy, password-protected access to real-time information and special content about Bank of America. -0-

                 NEIGHBORHOOD ADVANTAGE ZERO DOWN(TM)
                      MEANS LESS CASH TO CLOSE

    With Neighborhood Advantage Zero Down, it takes less cash to
close.  Here's an example comparing Zero Down to other
low-downpayment loans on a $100,000 purchase price.


                     Neighborhood      Standard
                      Advantage        3 percent         FHA
                      Zero Down       Downpayment     Fixed Rate
                        Loan             Loan            Loan

    Downpayment            $0           $3,000          $2,564

    One-time Closing
     Costs             $1,408           $1,388          $2,038

    Recurring
     Closing Costs       $620             $608            $617


    CASH TO CLOSE      $2,028           $4,996          $5,219


NOTE -- This example assumes average closing costs.  Actual closing
costs may vary.

SOURCE:  Bank of America and GE Capital Mortgage Insurance Corporation
-0-

CONTACT: Bank of America

Betty Riess, 415/622-6397

or

GE Capital Mortgage Insurance Corp.

John Lewis, 800/334-9270, extension 2399