CALABASAS, Calif. — Countrywide, the largest provider of homeloans in the country will be acquired by Bank of America for areported price tag of $4 billion. A major source of the pain nowfelt in the mortgage sector, owing to its loose lending standards,Countrywide was said to be on the brink of declaringbankruptcy.

BOA had previously made a $2 billion investment in Countrywideand may face mounting liabilities in taking over the troubledcompany, which reported that 7.2 % of its mortgage servicingportfolio was delinquent in December 2007. “Countrywide has been arogue lender with a rogue leader,” Martin Eakes, chief executive ofthe Center for Responsible Lending told the New York Times. “Bankof America would be a responsible home for fixing the problems thatCountrywide has created.”

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.