Bank of America Corp. confirmed Friday that it has agreed to buy Countrywide Financial Corp. for $4 billion in stock, a deal that rescues the ailing Countrywide and makes BoA the largest residential lender in the United States, with a market share of almost 24%. Once their mortgage operations are combined, BoA/Countrywide will service $1.9 trillion worth of home loans, giving it a 21% share in that business. The boards of both companies have approved the sale, which is expected to close in the third quarter. Countrywide is a thrift, BoA a commercial bank. In a statement, BoA said the new company will not originate subprime loans. Back in August BoA bought a small stake in Countrywide, paying $2 billion for it. Now it is buying the entire company for $4 billion. The sale comes after a tumultuous week for Countrywide, a company that is almost 40 years old. Early in the week, bankruptcy rumors sent Countrywide's stock reeling to just $4.43, compared with a 52-week high of $45. The statement issued by BoA does not address the fate of Countrywide's founder, chairman, and chief executive, Angelo Mozilo. Mr. Mozilo, 70, was expected to retire at year's end.
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Lumber retains protections for now, but construction stocks still fell, and while the initial market reaction lowered rates, there could later be a reversal.
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While prices are still rising, an increase in reductions from listing suggests sellers are adjusting to the new reality for home buying this season.
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Homebuyers would be able to take advantage of streamlined finance options, folding energy infrastructure costs with their mortgages, the companies said.
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The bank said it will appeal the judge's ruling, which it suggested would have a chilling effect on lenders participating in such government programs.
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Jonathan Gould, President Donald Trump's pick to lead the Office of the Comptroller of the Currency, passed through the Senate Banking Committee on a party-line 13 to 11 vote.
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United Wholesale Mortgage led its industry peers in total origination volume, though Rocket Mortgage and Crosscountry weren't that far behind.
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