CALABASAS, Calif. — Countrywide, the largest provider of home loans in the country will be acquired by Bank of America for a reported price tag of $4 billion. A major source of the pain now felt in the mortgage sector, owing to its loose lending standards, Countrywide was said to be on the brink of declaring bankruptcy.
BOA had previously made a $2 billion investment in Countrywide and may face mounting liabilities in taking over the troubled company, which reported that 7.2 % of its mortgage servicing portfolio was delinquent in December 2007. “Countrywide has been a rogue lender with a rogue leader,” Martin Eakes, chief executive of the Center for Responsible Lending told the New York Times. “Bank of America would be a responsible home for fixing the problems that Countrywide has created.”
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