Bank of America Corp. has received approval from the Board of Governors of the Federal Reserve System to purchase Countrywide Financial Corp. The transaction remains subject to the approval of Countrywide shareholders and other closing conditions. Closing is expected to occur in the third quarter.
The purchase of Countrywide would make Bank of America the nation's leading mortgage lender and loan servicer and would mark an important step toward deepening the company's consumer real estate product offerings, according to Bank of America.
‘This transaction represents a rare opportunity for Bank of America to significantly gain market share in the mortgage business, allowing it to expand in a cornerstone financial product,’ states Kenneth D. Lewis, chairman and CEO of Bank of America.
Countrywide customers would eventually gain access to a broad set of consumer financial products such as credit cards and deposit services.
‘Mortgages continue to be a key consumer product for Bank of America, serving as a driver for adding new customers and deepening relationships with existing ones,’ Lewis adds. ‘Countrywide, through its systems, distribution network and servicing platform, will give Bank of America greater ability to meet customers' credit needs.’
Source: Bank of America