Bank of America is buying Countrywide. I guess we should have seen this coming considering how Bank of America had been posting “bail” for Countrywide for quite a few months. From MarketWatch:
NEW YORK (MarketWatch) — Bank of America Corp. said Friday it’s purchasing Countrywide Financial Corp. for $4 billion, effectively doubling down on a previous investment in the troubled firm and catapulting the buyer into the top spot among mortgage lenders and loan servicers in the U.S.
The stock-swap deal will put an end to the independence of the troubled California lender headed by Angelo Mozilo, and represents an increase from the Charlotte, N.C., bank’s August investment of about $2 billion.
There were rumors earlier this week that Countrywide was running out of cash.
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on Jan 14th, 2008 at 8:47 am
Yup, it’s going to be very interesting. If BofA can loosen up their Loss Mitigation procedures, they’ll stop taking back as many REOs. They’ll slow down the bleeding until the national markets turn around. However, if they don’t revolutionize their systems, it’s going to get ugly for BofA. I’m sure they have some plan up their sleeves…
on Jan 15th, 2008 at 11:01 am
AZ Foreclosure Realtor,
I hope the plan works. There is a lot at stake…
on Jan 19th, 2008 at 7:03 pm
Who ever would have thunk it? Countrywide was an absolute giant that a few years back nobody thought would ever fall. It sure will be interesting to see what BOA does with it. I wonder how long this has been going on though…I have about four friends who worked for CW and only one made the cut in their recent staff slashings…this must have been in the pipe for some time now.