B of A to purchase Countrywide - it’s official
The Board of Governors of the Federal Reserve System officially approved Bank of America’s plan to purchase Countrywide Financial Corporation. After Countrywide’s shareholders approve the deal, B of A will become the country’s largest mortgage lender and loan servicer. The Countrywide name will be no longer, and Bank of America is promoting one of their employees to run the new mortgage division instead of using a Countrywide executive. What does this mean for you?
This may be an important step in helping to fix the ongoing credit crisis. Countrywide will have access to B of A’s huge cash reserves and credit power, further allowing them to approve loans at an increased rate. Additionally, consumers can cultivate their relationship with Bank of America as it will become essentially a one-stop shop for all banking and credit needs. Savings, checking, credit card, mortgage, home equity, retirement, investments - you can now obtain all of these services at one location.
It is my hope that consumers can regain that old, small town feel with their bank and banker. As community savings institutions continue to be bought by larger regional or multinational banks consumers do not feel like they know who they are dealing with.
This is by no means an endorsement of either institution. It is my hope that by publishing this news that potential buyers will know that there are many options out there, and B of A will certainly be one of those options. Good luck getting that mortgage!