Bank of America (BofA) acquired ailing Countrywide in a $4 billion all-stock transaction on January 11, 2008. The acquisition comes 5 months after BofA invested $2 billion in Countrywide. BofA was able to purchase the nation's largest mortgage lender at 2.9 times Countrywide's projected 2009 earnings. BizJournal Nashville: Bank of America to buy Countrywide for $4B(January 11, 2008)
Countrywide Fast Facts:
- 1.04% of loans in Countrywide's portfolio resulted in foreclosures BizJournal Nashville: Bank of America to buy Countrywide for $4B(January 11, 2008)
- Countrywide shareholders would receive 0.1822 of Bank America stock for each Countrywide shareThe New York times: Bank Agrees to Buy Troubled Loan Giant for $4 Billion(January 11, 2008)
- In December 2007, 7.2% of Countrywide's loans were delinquentThe New York times: Bank Agrees to Buy Troubled Loan Giant for $4 Billion(January 11, 2008)
- Countrywide oversees nearly $1.4 trillion in loan assetsThe New York times: Bank Agrees to Buy Troubled Loan Giant for $4 Billion(January 11, 2008)
- Countrywide paid a dividend of 7.25% on preferred stock during the August 2007 BofA $2 billion cash injection
BofA Fast Facts:
- BofA plans to operate Countrywide separately under the Countrywide brand
- BofA expects $670 million in after-tax cost savings from the transactionThe New York times: Bank Agrees to Buy Troubled Loan Giant for $4 Billion(January 11, 2008)
- Bank of America will absorb Countrywide's loan portfolio
- In August 2007, Bank of America agreed to provide $2 billion in relief financing to Countrywide
Does anyone know who is servicing Bank of America's recently acquired Countrywide mortgages?(2 Answers)
A:
It appears that loan servicing is being done through Bank of America Home Loans, an arm of Bank of America. "Whether your home loan is through Bank of ...
Were you surprise that Bank of America needs to raise $34 billion?(1 Answer)
A:
I'm surprised to hear that. I thought they were doing well since it seems they are buying out all these other banks. All the Lasalle banks around ...
does anyone know who is servicing Bank of America's recently acquired Countrywide mortgages? 'cause it's NOT Bank of America...(1 Answer)
A:
The merge of Country Wide accounts (CW) to Bank of America accounts (BofA) is not complete as of yet. CW account holders should continue to remit their mortgage ...
