BofA plans $40 billion in workouts after Countrywide merger

Combined company's mortgage HQ to be in California

In another move intended to smooth the way for its planned acquisition of Countrywide Financial Corp., Bank of America has announced that the combined company would work to modify $40 billion in troubled mortgages in the next two years — about 265,000 loans.

Bank of America also announced Monday that it’s committed to make $1.5 trillion in community development loans and investments over the next 10 years, double the existing goal of $750 billion.