It has been rumored for some time, however yesterday it seemed to gather increased reporting by some of the financial publications. Both Bloomberg and Reuters had extensive articles about Bank of America puchasing Countrywide.
As I was doing some research for this article I received an email from a Countrywide Loan Officer whom I have known for several years. The email was forwarded and the original is from Angelo Mozilo, Chairman and CEO of Countrywide to all Countywide employees so I would say that this pretty much takes this purchase out of the rumor category. Here is an exerp from the email:
"The highlights are the Bank of America has agreed to buy Countrywide but are going to run Countrywide under the Countrywide brand. This is what many of us wanted to happen – although many of our competitors did not want this to happen. This makes us by far the biggest mortgage company in the country!"
Last August when local lender Homebanc went out of business Countrywide took over their loan origination. Now with Bank of America buying Countrywide the largest mortgage company in the country has been created.
Last fall Bank of America elected to shut down their mortgage wholesale division and originate all loans in house. Now with this aquisition, perhaps the question that should be asked is does this in any way resemble a monopoly? You would have to guess that the Security and Exchange Commission will address this possible issue.
Here is the primary question that I have about this purchase and Bank of America becoming so large in the mortgage business, If the mortgage business in this country is in such bad shape why would Bank of America elect to buy Countrywide and increase their exposure? Sure they are getting Countrywide at a reduced price as Countrywide stock has tanked recently but what about loans that default in the future? Some of the articles that I read indicated that there is a chance that Countrywide was going to be filing for bankruptcy protection. Bank of America could have possibly bought Countrywide for less then.
We will all have to wait and see what the future holds with this purchase. My recommendation to anyone who is refinancing or purchasing a home would be to shop around for the best terms and conditions for your mortgage. Make sure to get a "Good Faith Estimate" and compare the costs from each of the lenders you have selected.
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We have a loan with Countrywide and today I recieved a statement from Bank of America and I was never notified that Bank of Ammerica had acuired my loan from Countrywide. I am concerned. How do I know for sure that my loan is infact with Bank of America and it was done legally? The payment is not due until June, but I would like some kind of notice from Countrywide. If I need to contact someone please let me know.
Hi Elfie and Welcome to the conversation. BOA has bought Countrywide so it adds up that they would want to service the loan. If you have questions perhaps you should contact the Countrywide facility that handle the servicing of your loan previously.