Bank_of_AmericaPayments to begin in first quarter of 2010

* Bank to offer $150 million to Countrywide borrowers

NEW YORK, July 23 (Reuters) – Bank of America Corp (BAC.N) said it has begun notifying Countrywide Financial Corp borrowers that are eligible for foreclosure assistance and plans to begin issuing checks to customers during the first quarter of 2010.

Bank of America, which purchased Countrywide last year, reached an agreement last fall with state attorneys general to make up to $150 million of relief available to certain borrowers who experienced a foreclosure, short sale or deed-in-lieu of foreclosure after taking out a Countrywide mortgage.

Countrywide was ground zero in the mortgage and housing industry meltdown that has cost U.S. banks hundreds of billions of dollars in credit losses and writedowns.

In June, Countrywide co-founder Angelo Mozillo was charged by the Securities and Exchange Commission with securities fraud and insider trading.

Rust Consulting, a third-party administrator, is managing the foreclosure assistance notification and payments to eligible customers in 40 U.S. states. (Reporting by Steve Eder; editing by John Wallace)