Bank of America to Reduce Principals

As part of the foreclosure settlement, Bank of America will be offering principal reductions on mortgages originated by Countrywide.  NY Times:

The cuts for homeowners who owe more than their homes are worth could total more than $100,000 each under the deal with the government, according to Dan Frahm, a spokesman for Bank of America. Bank of America hopes it will be able to reduce what it owes in penalties under the settlement by up to $850 million.