Bank of America Corp. said Wednesday that most of the home-mortgage borrowers it had planned to offer principal reductions under a company program will instead be funneled to a government initiative that gives the servicer incentive payments.

The Treasury Department's program also will provide relief more quickly for these troubled borrowers. It would make principal reductions permanent over three years, versus five years for B of A's program, Jack Schakett, the Charlotte banking company's credit loss mitigation executive, said Wednesday.

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