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CHARLOTTE (MCT) — Bank of America Corp. chief executive Brian Moynihan faced complaints about his bank's handling of foreclosures at today's annual meeting, even as shareholders rejected a proposal that called for an audit committee review of the mortgage business.

The Charlotte bank didn't disclose the votes received for the mortgage proposal, but an advocate said he believed the measure received strong support. The New York City Comptroller submitted the proposal at Bank of America and other large banks after allegations surfaced last fall of sloppy handling of mortgage paperwork.

"All we're asking the audit committee to do is their job," Michael Garland, executive director for corporate governance for Comptroller John Liu, said after the meeting.

At Moynihan's second annual meeting as CEO, shareholders elected all 13 directors on the ballot, ratified the bank's executive compensation and voted down all eight shareholder proposals. Stockholders also favored an annual vote on executive pay and approved PricewaterhouseCoopers as auditor.

A group of clergy members staged a protest outside before the meeting, but the event was more low-key than the past few gatherings, when shareholder anger was more raw in the wake of the financial crisis. Moynihan even collected compliments for the bank's decision to stop charging overdraft fees on debit card transactions.

In his opening remarks, Moynihan worked to distinguish the successful parts of the company from the struggling mortgage business, clearly laying the blame on the 2008 purchase of tottering mortgage lender Countrywide Financial Corp.

Regulators "welcomed" the bank's purchase at the time, but "now the attitude has changed," Moynihan said, appearing to allude to regulatory investigations of servicing practices at large lenders. Moynihan stressed the bank's efforts to work with struggling borrowers, including completing 840,000 loan modifications since 2008.

Also referring to the bank's lingering mortgage problems, board chairman Chad Holliday Jr. told shareholders the bank is "behind on some of the things we wanted to accomplish," but is working to create a solid foundation for the future. "We are behind (Moynihan) and the management team 100 percent," he said.

Bank of America was one of the large servicers that met Tuesday in Washington with state attorneys general and federal officials probing mortgage practices. A person familiar with the situation said both sides want to get a settlement done as quickly as possible but sticking points remain, including the amount of money servicers might pay. Servicers offered to pay a $5 billion penalty at the meeting, much less than $20 billion sought by some officials.

Bank of America also remains opposed to a requirement that banks reduce loan balances for struggling borrowers, the person said. The bank believes such a program is bad policy and could encourage customers to purposely default.

In his opening remarks, Moynihan also addressed the Federal Reserve's rejection in March of the bank's request to modestly increase its penny-per-share quarterly dividend in the second half of the year. The bank won't resubmit its request until it knows it will get approval, he said.

The Charlotte bank must first finish Merrill Lynch merger work, including improvements to risk management systems, Moynihan said. He expects that work to be completed this year.

This year's gathering was held for the first time at the bank's new environmentally friendly 1 Bank of America Center building in uptown. Before the meeting began, a crowd of about 30 demonstrators gathered outside, protesting the bank's handling of foreclosures.

The clergy and homeowners -- part of a coalition of religious leaders called N.C. United Power -- came to Charlotte from around the country and called on the bank to modify more mortgages and help more customers keep their homes.

"No society can allow a permanent debtor class to emerge," said Mike Broadway, a professor of theology and ethics at Shaw University Divinity School in Raleigh.

Nearby, a man held a sign condemning those who "cheat an owner of his house, a man of his inheritance." Another held an oversized envelope, addressed to Moynihan, from "the millions of households who have lost their homes -- return address not available."

The protestors also highlighted a recent investigation by Guilford County's register of deeds, Jeff Thigpen, which turned up about 4,500 loan documents from banks including Bank of America and Wells Fargo & Co. with apparently fraudulent signatures.

"We think there's a smoking gun," said Gerald Taylor, leader of N.C. United Power, who called on other clerks to conduct similar investigations. "Why has nobody ... been brought to justice on this?"

The Rev. Clyde Ellis, a pastor from northern Virginia, said foreclosures have affected many from his congregation. One couple he knows has lost more than 70 percent of their income but were denied a loan modification, he said.

Later, inside the annual meeting, Ellis spoke in favor of a shareholder proposal that called for an independent review of the bank's loan modification and foreclosure processes.

"You just need to come to Prince William County -- you'll see some disaster," Ellis told Moynihan, referencing an earlier comment about bank's response to the earthquake and tsunami in Japan. "Sir, you've got to accept full responsibility for everything that has happened in this foreclosure situation."

The bank CEO thanked him and promised to prioritize helping the county.BofA faces mortgage questions at meeting