Bank of America: First Principal-reduction Letters Going Out

— -- Bank of America said Monday that the first homeowners should get offers in the mail this week for principal reduction on home loans as part of the $25 billion mortgage settlement with leading mortgage servicers and federal and state officials.

Most offer letters will be mailed by fall, BofA says.

More than 200,000 homeowners may qualify, it says, for average monthly savings of 30%.

Homeowners must meet criteria, including being underwater on mortgages and being at least 60 days behind on payments as of Jan. 31.