Industry NewsMortgage

BofA providing death, dismemberment coverage on mortgages

Police, firefighters, teachers, medical workers eligible for free insurance

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Bank of America says it will provide up to $300,000 of insurance coverage with special mortgages designed to help police officers, firefighters, teachers and medical workers buy homes in the communities they serve. Bank of America says the insurance -- which covers the mortgage payments of public servants who are killed, paralyzed or dismembered -- is not a marketing ploy. The North Carolina-based lender says the program was born out of its experience with Adam Pierce, an Orange County, Fla., sheriff's deputy who feared he would lose his home after he was shot and wounded in the line of duty in 2005. Bank of America says it paid off Pierce's mortgage, and has grandfathered in another 8,000 mortgages originated to date through the bank's "Neighborhood Champions" loan program. Borrowers eligible for the Neighborhood Champions program include full-time police officers and others working in law enforcement; firefighters and fire department employees; full-time medical work...