Countrywide Financial Corp. lost $893 million, or $1.63 per share, in first quarter 2008, mainly as a result of taking $1.5 billion in loan-loss provisions, the Associated Press reported. The company earned $434 million, or 72 cents per share, in the year-ago period.

Bank of America Corp. agreed to buy Countrywide for $4 billion in stock, which is expected to close in the third quarter.

Upon completing the acquisition, Bank of America said it plans to modify or address at least $40 billion in troubled mortgages and will strive to keep about 265,000 people in their homes, the Charlotte Business Journal reported. The bank will continue its policy of allowing people to remain in their homes 60 days after completing foreclosure proceedings and giving $2,000 for moving expenses to those who voluntarily leave their homes within 30 days of foreclosure.

As of December 2007, nearly 34 percent of Countrywide’s subprime mortgages were delinquent, up from 21 percent in December 2006.

Bank of America also plans to spend $1.5 trillion in the next 10 years on community development efforts focused on affordable housing, economic development and consumer and small-business lending.