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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Even as home equity withdrawals hit a two-year high, utilization rate remained less than half of normal, ICE Mortgage Technology said.
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Sens. Elizabeth Warren and John Hickenlooper say recent data suggests there is "no need for restrictive interest rates" and easier monetary policy is necessary to lower housing costs.
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The joint venture with Smith Douglas Homes will expand Loandepot's market presence in states including Georgia, Alabama and Texas.
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Flueid, which provides verification of title services, has raised $8.3 million of new capital, with lead investor LiveOak Ventures along with Gilbert's Detroit Venture Partners.
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Mortgage professionals are focusing on housing policies and the Federal Reserve this November.
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Esusu, Foyer, Divvy Homes and Tomo Mortgage are among the fintechs trying to give first-time homebuyers a break, alongside community development financial institutions like Southern Bancorp.
November 3