The Financial Times reported that Bank of America Corp plans to decrease its $850 billion portfolio of troubled home loans by about half within the following three years. However, the company spokespersons failed to detail what exactly the company would do to achieve this goal.

The company suffered hard times due to the housing crisis and the purchase of Countrywide Financial. Last month, Bank of America posted an unexpectedly sharp drop in first-quarter profit as higher expenses from delayed home foreclosures weighed on its mortgage business.

BofA's Terry Laughlin was asked to tackle the growing number of bad loans that impact the bank's overall performance, the Financial Times reported.

"We are isolating the problems and quickly identifying the resources we need to fix them," Laughlin told the Financial Times.